In a recent Twitter post, analyst firm Weiss Crypto Ratings criticized the Cardano Foundation after it announced that IOHK’s Cardano had partnered with data provider Coinfirm to fight money laundering.
Charles Hoskinson, the founder of Cardano and IOHK, recorded a short video in response to Weiss Crypto Ratings.
Cardano Partners With Coinfirm to Drive FATF Compliance
On August 24, the Cardano Foundation signed a collaboration agreement with Coinfirm, a provider of AML (Anti-Money Laundering) and CFT (Combating the Financing of Terrorism) data, to ensure that Cardano is fully compliant with international guidelines FATF (Financial Action Task Force) regulators.
Cardano Mel McCann’s head of technology integration believes that cryptocurrencies need AML/CFT analysis to achieve mass adoption in a regulated market.
Coinfirm offers cryptocurrency exchanges, custodians, and other types of third-party companies to help track the history of the coins in users’ wallets. This can now also be used for ADA.
Weiss Crypto Attacks Cardano
Weiss Crypto called this a “bad move” adding that it was disappointing and provided an explanation for its position. The analysts believe this move will be like the banking system after it over regulates itself and will “choke” Cardano and ADA.
Another negative impact that this will have in the future, according to Weiss Crypto, is that this step makes the Cardano blockchain a “network susceptible to censorship, politicization and manipulation.”
The tweet said that if Cardano is to go that route, Facebook’s Diem and CBDC can do a better job here.
On the contrary: The so-called “money laundering laws” are known to be enacted through high financial prices so that nothing escapes them. As we said in the introduction, bad behaviour is everywhere and disappointing.
Weiss Crypto added that the financial elite will never accept the crypto industry; therefore, a crypto platform that follows its rules will only make it die in the future.
Charles Hoskinson Posted a Video Reply
Cardano’s founder responded that partnerships like this are important because they offer clarity, address a large number of business and technical needs, and allow blockchain companies (in this particular case, Cardano) to each provide better software and Cardano a stronger one Enables acceptance in all regulated environments and unregulated industries around the world.