An analytics company, Elliptic, added tools to monitor transactions on the Litecoin blockchain after enabling the MimbleWimble Extension Block (MWEB) update.

Elliptic is the first blockchain analytics provider to support the Mimblewimble privacy feature in Litecoin, keeping regulated businesses compliant with anti-money laundering regulations and sanctions.https://t.co/qpzLpVqzZh#litecoin #mimblewimble

– elliptical (@elliptic) May 27, 2022

On May 19, the MWEB update was activated on the Litecoin network. The MimbleWimble protocol uses a variety of technologies, including confidential transactions and CoinJoin, which hides the inputs and outputs of senders and receivers and combines many transactions into a single transaction.

“This is a problem for companies involved in transactions with LTC. They must comply with anti-money laundering regulations or prevent sanctions from being circumvented. Information [об отправителях и получателях переводов] such assets are used to assess risks,” the press release says.

Previously, Bithumb and Upbit allowed Litecoin to be delisted after MWEB was activated. The platforms noted that they operate in accordance with South Korean laws, which require the implementation of measures to combat money laundering and terrorist financing.

The companies stressed that their policy ensures that an asset is disposed of if it “violates laws, government regulations and financial authorities.”

Elliptic explained that the launched tool does not focus on tracking or anonymizing Litecoin users. The solution allows the client to determine whether a transaction or wallet contains funds added using privacy features.

“Compliance professionals can use this data to assess risk and conduct further due diligence,” the company said.

Recall that in 2020, Elliptic offers a similar solution for Zcash (ZEC) and Horizen (ZEN) cryptocurrencies.