Breaking: Binance Drops Support For Litecoin, LTC Slumps 11%

Crypto exchange Binance said on Monday it will not support a recent privacy upgrade for Litecoin (LTC) that allows anonymous transactions.
By Ambar Warrick
litecoin ltc news

Crypto exchange Binance said on Monday it will not support a recent privacy upgrade for Litecoin (LTC), citing concerns over anonymous transactions.

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.

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.

Advertisement
Advertisement

Binance the latest exchange to object to Litecoin’s MimbleWimble

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 Several major South Korean exchanges had withdrawn support for Litecoin after the update.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.

Advertisement
Advertisement

Binance faces scrutiny over illegal transactions

Binance’s move to drop Litecoin support comes shortly after the exchange was accused of allowing over $2.3 billion worth of illegal transactions on its platform.

While Binance has denied the allegations, it has raised the question of how much privacy is right in crypto. Litecoin’s addition of confidential transactions has also subjected it to increased scrutiny from several exchanges.

Regulators argue that private transactions are a festering ground for money laundering and illegal transactions. Upcoming legislation in the European Union will even target such transactions.

But a bulk of private transactions in crypto, especially through self-custodial wallets, are almost untraceable without some inside information. This makes regulation incredibly difficult.

Advertisement
Ambar Warrick
With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at [email protected]
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.