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Analytics company Elliptic has added transaction tracking tools to the platform on the Litecoin blockchain after activating the MimbleWimble Extension Block (MWEB) update.
Elliptic is the first blockchain analytics provider to support the Mimblewimble privacy feature on Litecoin keeping regulated businesses compliant with anti-money laundering regulations and sanctions.https://t.co/qpzLpVqzZh#litecoin #mimblewimble
— elliptic (@elliptic) May 27, 2022
On May 19, the MWEB update was activated on the Litecoin network. The MimbleWimble protocol uses several technologies, including confidential transactions and CoinJoin, which hides the inputs and outputs of senders and recipients, and also combines many transactions into one.
“This is a problem for companies involved in transactions with LTC. They must comply with anti-money laundering rules or prevent circumvention of sanctions. Information [об отправителях и получателях переводов] such entities are used to assess risks,” the press release said.
Earlier, Bithumb and Upbit allowed the delisting of Litecoin after the activation of MWEB. The platforms noted that they operate in accordance with the legislation of South Korea, which requires the implementation of measures to combat money laundering and terrorist financing.
The companies stressed that their policies provide for the desting of an asset if it “violates laws, regulations of the government and financial authorities.”
Elliptic explained that the launched tool is not focused on tracking or deanonymizing Litecoin users. The solution allows the customer to determine whether a transaction or wallet includes funds that are added using privacy features.
“Compliance specialists can use this data to assess risk and conduct further due diligence,” the company added.
Recall that in 2020, Elliptic introduced a similar solution for the cryptocurrencies Zcash (ZEC) and Horizen (ZEN).
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