Litecoin (LTC) developers are relaunching the MimbleWimble testnet after the first testnet period that started back on September 30. This comes after European regulators increase their scrutiny on privacy digital assets and solutions.
The MimbleWimble implementation will have to be tested by the community once again. David Burkett, the developer behind the MimbleWimble protocol is going to be working on a new solution that would help non-technical users test the new protocol.
MimbleWimble aims at providing Litecoin with privacy features that would protect users’ information when they will be sending or receiving LTC. This would make Litecoin the largest cryptocurrency in the world with privacy features.
However, the main issue Litecoin is going to face is related to regulators all over the world. Countries and financial organizations are closely following the development of privacy coins and how they adapt to regulations.
One of the organizations that are interested in different privacy solutions is Europol. Europol is now worried about decentralized marketplaces, crypto mixers online and privacy coins. According to Europol’s Internet Organised Crime Threat Assessment released in 2020, they mention several examples in the cryptocurrency market that are now providing more privacy to users.
There are also several solutions that have been implemented such as the Coinjoin mixer in different crypto wallets. This can be useful for a large number of criminals to hide their addresses and funds transacted from the public eye. Bitcoin (BTC), Litecoin (LTC) and many other virtual currencies work with public ledgers, meaning all the information is public and can be accessed by every interested user, government, or regulatory agency in the world.
At the moment, there are other virtual currencies that are offering privacy solutions. The largest and most popular one is Monero (XMR). This one is currently among the top 15 virtual currencies in the market and it is allowing users to protect their information and privacy when sending or receiving transactions.
Other digital assets offering privacy solutions include Dash, or Zcash (ZEC). Although these are not as popular as Monero or Litecoin, they are among the top 50 and they are offering users the possibility to easily transact their funds with increased privacy features.
If the cryptocurrency market wants to remain compliant with regulators it will definitely have to change its approach. This is something that could upset users that value privacy and that want to have their information and data protected.