Litecoin Mimble Wimble deposits and withdrawals not supported by Binance cryptocurrency exchange
Mimble Wimble technology is incredible. It hides the sender’s address and lets you send secretly send Litecoin transactions without revealing transaction data. In order to remain compliant, many cryptocurrency exchanges have started either delisting Litecoin altogether or have asked users not to send any LTC using Mimble Wimble (MW) technology.
At the same time, users will not be allowed to withdraw funds to a Litecoin Mimble Wimble address. Keep in mind that Binance cannot control operations on Litecoin’s blockchain and even if your funds get processed when you use MW tech, these funds won’t get credited in Binance app.
This does not make binance bad. They want to stay regulated in as many countries as possible and many countries are not huge fans of privacy tech. This is the same reason why Dash got delisted from many cryptocurrency exchanges in early 2021.
#Binance will not support the deposits and withdrawals of @litecoin $LTC utilising MimbleWimble Extension Blocks (MWEB).https://t.co/YZRrIgXJzF
— Binance (@binance) June 13, 2022
While privacy is a basic human right, centralized crypto exchanges have to adhere to local cryptocurrency laws. Since Litecoin is often seen as Bitcoin’s testnet, it will be interesting to see exchanges’ reaction if MW technology ever comes to BTC blockchain.