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Elliptic became the first today blockchain analytics provider to support the Mimblewimble Extension Block (MWEB) privacy feature on Litecoin. This allows regulated businesses to continue to support Litecoin transactions while remaining compliant with anti-money laundering regulations and sanctions.
The Mimblewimble protocol was built into Litecoin just last week and gives users the ability to send “confidential” transactions, which disguise the participants and the amounts involved. This is a challenge for companies involved in Litecoin transactions, which must comply with anti-money laundering regulations or sanctions, as they use this information to assess risk.
Elliptic’s solutions do not seek to track or de-anonymize confidential Litecoin transactions. Instead, they allow businesses to identify whether a transaction or Litecoin wallet includes funds that have used this privacy feature. Compliance professionals can then use this information to assess risk and perform further due diligence.
“By providing visibility into Mimblewimble activity, Elliptic’s transaction and wallet verification solutions provide businesses with the risk visibility they need to continue supporting Litecoin while meeting their legal obligations.” said Dr. Tom Robinson, Chief Scientist at Elliptic.
Elliptic has previously added support for other privacy technologies. In 2020, there was support added for Zcash and ZEN privacy coins.
How we can help
Contact us to arrange a demonstration of our cryptoasset compliance solutions, including our support for Litecoin transactions using Mimblewimble.
Stablecoins Financial Services Compliance
