Litecoin’s MWEB gets a No Go from Binance; Details

Sahana Kiran
Source – Unsplash

The crypto-verse consists of a wide range of cryptocurrencies from meme coins to tokens and even privacy coins. Litecoin [LTC], the digital silver to Bitcoin’s digital gold, decided to explore the privacy shores. As a result, after several years of diligent work, the network finally welcomed MimbleWimble Extension Blocks [MWEB]. This was a brand new privacy wing that allowed users to carry out confidential transactions. But, this idea did not sit well with an array of regulators.

Leading exchange Binance already had a lot on its plate. With its recent SEC probe as well as its expansion plans, the exchange did not want any tiff with the regulators. As a result, the exchange emerged as one of the first mainstream crypto platforms to drop support for transactions made via Litecoin’s MWEB.

In a recent blog post, Binance wrote,

“Any LTC deposits made to Binance through the MWEB function will not be received or returned as we are unable to verify the sender’s address, resulting in the direct loss of funds. To ensure the security of your funds, please do not deposit LTC through the MWEB function.”

Several in the community in fact saw this coming. Back when Charlie Lee, the creator of Litecoin announced the addition of MWEB, several community members expressed fear over LTC being delisted. However, Lee affirmed that the entire network wasn’t turning into a private network but only a part of it was.

Will more exchanges follow suit and delist Litecoin?

Just last week, about five prominent South Korean crypto exchanges went on to delist Litecoin. This list included Upbit. Bithumb, Korbit, Gopax as well as Coinone.

While financial privacy is a human right, regulators have just started to warm up to the crypto-verse. Privacy coins and confidential transactions would undoubtedly take a while to settle in with them. Meanwhile, exchanges are coerced to comply with the regulators. As a result, the community speculated about the possible delisting of Litecoin on an array of other crypto exchanges.