Cryptocurrency exchange Binance will not support Litecoin (LTC) deposits and withdrawals using the privacy feature.

#Binance It will not support deposits and withdrawals. @litecoin $LTC Using MimbleWimble Extension Blocks (MWEB).https://t.co/YZRrIgXJzF

— Binance (@binance) 13 June 2022

Wide scaling and increased privacy capabilities emerged after the MimbleWimble Extension Block (MWEB) update was enabled on the Litecoin mainnet. The protocol uses a variety of technologies, including confidential transactions and CoinJoin, which hides the inputs and outputs of senders and receivers while also consolidating many transactions into a single transaction.

Binance warned that this could result in a loss of funds, as the exchange cannot identify the sender or receiver to refund.

The post reads, “To keep your funds safe, please do not deposit LTC through the MWEB feature”.

Previously, major South Korean exchanges had disclosed the possibility of delisting the asset, arguing that it violated local laws.

In June, the Upbit platform warned users that it would remove LTC and offered to withdraw by July 20.

Recall that Elliptic added transaction tracking tools on the Litecoin blockchain to the platform after MWEB was activated.