Litecoin's MimbleWimble upgrade was supposed to provide a long-awaited privacy-based upgrade, but it has instead put it in hot water with regulators across the globe.
Meanwhile, all hopes may not be lost just yet regarding Litecoin in South Korea. On June 3, blockchain analytics and crypto compliance firm Ellipticwhat it claims will be a solution to the curious situation brought about by the MWEB upgrade.
The firm insists that it doesn’t intend to trace whoever is behind any masked LTC transactions. However, it believes it can help regulated businesses to continue supporting Litecoin transactions, all while being in compliance with standing AML regulations. According to Elliptic, its solutions will help enable merchants to figure out when a Litecoin transaction or wallet holds funds that have passed through an MWEB transaction. With such information, businesses may then decide against proceeding with such activities that will be analyzed as “high risk.”
Essentially, this means that businesses, including South Korean crypto exchanges, can keep on supporting Litecoin as long as they are in the know at every point in time the privacy feature is activated by users.“By providing visibility of Mimblewimble activity, Elliptic’s transaction and wallet screening solutions provide businesses with the risk insights they need to continue to support Litecoin while meeting their legal obligations.
Robinson, in fact, spoke specifically about exchanges and the possibility of having to delist Litecoin. He claims that the exchanges do not have to, as they can carry out their businesses perfectly well without necessarily flouting any AML regulations in support of Litecoin. Furthermore, he added that at some point, one has to realize that virtually all cryptocurrencies have some way to hide their transaction flows, including conjoins on Bitcoin or Tornado Cash on Ethereum.