Cardano creator responds to criticism over new AML/CFT partnership

    29 Aug 2021

    Weiss Crypto Ratings recently bashed Cardano for the Cardano Foundation’s partnership with Coinfirm, saying that the move is disappointing and lead to Cardano’s death. Charles Hoskinson replied to the criticism by claiming that the move will bring clarity for the users.

    As reported, Cardano Foundation recently teamed up with a well-known provider of AML data, Coinfirm. The goal of the partnership was to ensure and advance ADA’s FATF compliance, where Coinfirm will provide AML and CFT data to make sure Cardano and its coin are fully compliant with the Financial Action Task Force’s regulations.

    On Wednesday, Weiss Crypto, the subsidiary of leading financial rating firm Weiss Ratings, bashed Cardano for it, calling it an overall bad move. Not only that, but it added that the move was very disappointing, explaining that this move will push the project to ‘choking to death.’ Apparently, Weiss Crypto Ratings believes that the regulations are extremely excessive and that they will break Cardano before long. Furthermore, it expects that the move will make Cardano’s blockchain prone to censorship, manipulation and that it will be heavily politicized.

    Irrespective of the project and the upside many associates with Cardano, the analytics firm cautioned:

    “The established financial elites will NEVER accept the new kid in the block AKA the crypto industry. If you play by their rules, that will only guarantee your demise.”

    IOHK CEO Charles Hoskinson quickly responded to this criticism via Twitter:

    “The point in the purpose has always been building in layers, building modules, ecosystems. The base layer doesn’t care if you’re from China, Japan, or the US. What you can do is add identity and metadata and all kind of other things. Those other things give you the ability to be in compliance with your business domain regulators or otherwise.”

    According to Hoskinson, a partnership like this is important since it provides clarity to a lot of business and technical requirements. It also allows blockchain companies (like Cardano) to make software better for everyone and everywhere. Finally, it encourages Cardano to get more adoption in all regulated and non-regulated industries around the world.

    As reported before, Cardano has achieved a new all-time high of $2.54 in the early hours of trading Friday morning. ADA’s market capitalization topped $80 billion compared to Binance coin’s (BNB) $72.1 billion, according to Messari provider’s data. It has surpassed Binance’s native token in total market capitalization, becoming the third-largest crypto in the world. While the Cardano team continues to make significant progress towards bringing smart contracts functionality to the protocol via the much-anticipated Alonzo upgrade, experts have predicted that Cardano could see exponential growth in the coming months.

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