Binance Will Not Support Litecoin Deposits and Withdrawals That Use MimbleWimble Extension
Binance stated that they will not support the deposits and withdrawals of Litecoin (LTC) that utilize the MimbleWimble Extension Blocks (MWEB) function
Wide scaling and increased privacy capabilities appeared after the activation of the MimbleWimble Extension Block (MWEB) update in the Litecoin mainnet. The protocol uses several technologies, including confidential transactions and CoinJoin, which hides the inputs and outputs of senders and receivers, and combines many operations into one.
Last week, five of South Korea's major exchanges, Upbit (warned users that it would remove LTC and recommended withdrawing funds by July 20th) Bithumb, Coinone, Korbit, and Gopax, removed LTC from their platforms. In this regard, Upbit cited the Law on the Reporting and Use of Specific Financial Transaction Information, which prohibits anonymous transactions in South Korea, as the key reason for ending support for Litecoin.
In the announcement, Binance stated that they will not support the deposits and withdrawals of Litecoin (LTC) that utilize the MimbleWimble Extension Blocks (MWEB) function, which provides users with an option of sending confidential LTC transactions without revealing any transaction information.
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 security of your funds, please do not deposit LTC through the MWEB function.
The release makes it clear that Binance will not support Litecoin transactions that make use of MimbleWimble Extension Blocks (MWEB), however – unlike South Korean exchanges – Binance did not take the LTC delisting route but warned users not to make Litecoin transfers with the MWEB feature as it would result in a loss of funds.