Binance kicks against litecoin’s Mimblewimble privacy feature

Binance has announced that it won’t support litecoin transactions that make use of so-called MimbleWimble Extension Blocks (MWEB).

Binance joined South Korean exchanges in shunning the privacy feature.

On May 20, Litecoin developers activated an optional privacy-preserving protocol on the coin.

This allows the Litecoin network to conceal transactional data yet maintain its ability to process a lot of transactions quickly.

Last week, several Korean exchanges, including Upbit and Bithumb, notified users of delisting litecoin, saying that MWEB would hinder their ability to keep track of user transfers under anti-money laundering (AML) rules.

While Binance hasn’t taken the delisting route, it did warn users against making litecoin transfers with the MWEB function.

The exchange stated that if users made MWEB litecoin deposits into their Binance accounts, it would result in loss of funds.

Binance is not opposed to privacy-centered coins. Rather, as per Binance’s statement, it’s the inconvenience of managing litecoin’s MWEB transactions. Notably, it’s not possible to determine the crypto addresses in an MWEB transaction as those are concealed.