Binance said it will not support the MimbleWimble Extension Blocks function, which was recently deployed on the Litecoin blockchain.
The world’s largest crypto exchange said that it will specifically not accept deposits made through the function, as due to its privacy-heavy nature, the exchange will be unable to verify the sender’s address.
ADVERTISEMENT
Any funds sent through the function to Binance will be lost, the exchange said in an announcement.
Litecoin prices, which were already tracking broader losses in the crypto market, deepened their decline after the announcement. LTC is down over 11% in the past 24 hours at $43.64.
While Binance is so far the largest exchange to drop support for the MimbleWimble update, it is far from the first. Several major South Korean exchanges had withdrawn support for Litecoin after the update.
Upbit, South Korea’s largest exchange, said the move was intended to protect investors. The exchange will terminate all support for LTC by June 20.
The move represents apprehension among centralized crypto exchanges to completely anonymized tokens, or privacy coins. Major privacy coins such as Monero (XMR) and Zcash (ZEC) are banned in several countries due to their anonymous transactions.
The world’s largest crypto exchange said that it will specifically not accept deposits made through the function, as due to its privacy-heavy nature, the exchange will be unable to verify the sender’s address.
ADVERTISEMENT
Any funds sent through the function to Binance will be lost, the exchange said in an announcement.
Litecoin prices, which were already tracking broader losses in the crypto market, deepened their decline after the announcement. LTC is down over 11% in the past 24 hours at $43.64.
While Binance is so far the largest exchange to drop support for the MimbleWimble update, it is far from the first. Several major South Korean exchanges had withdrawn support for Litecoin after the update.
Upbit, South Korea’s largest exchange, said the move was intended to protect investors. The exchange will terminate all support for LTC by June 20.
The move represents apprehension among centralized crypto exchanges to completely anonymized tokens, or privacy coins. Major privacy coins such as Monero (XMR) and Zcash (ZEC) are banned in several countries due to their anonymous transactions.