The recent privacy-focused MimbleWimble upgrade on the Litecoin (LTC) blockchain has prompted two of Korea’s largest crypto exchanges to issue investment warnings about the fifth-largest cryptocurrency.

Bithumb and Upbit, which together account for the majority of trading volume in South Korea, released statements on Monday advising investors about the risks associated with the privacy-enhancing upgrade. Litecoin’s use of privacy-focused technology Mimblewimble allows users to make “confidential transactions,” that allow them to send tokens while concealing transaction data, according to Bithumb. Upbit issued a similar statement.

The two exchanges cited Korea’s Act on the Reporting and Use of Specific Financial Transaction Information, a law that requires crypto exchanges to put in place Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.

Korean exchanges have a history of delisting cryptocurrencies after making such warnings. The other two major South Korean exchanges, Korbit and Coinone, have not yet made any statements.

“You’re a wizard, Harry.”

Mimblewimble is not just a tongue-tying spell used in the magical series, but it’s also a privacy-oriented decentralized protocol that structures and stores transactions on the blockchain. https://t.co/XCpNlb5AiD

— Cointelegraph (@Cointelegraph) November 22, 2021

MimbleWimble upgrade concept was first proposed almost two and a half years ago. The new upgrade was released earlier this year after a majority of nodes approved the MimbleWimble (MWEB) update, and will be able to interact with new MWEB privacy features….