In a recent Twitter thread, Weiss Crypto Ratings analytics agency poured criticism on the Cardano Foundation after it was announced that IOHK's Cardano partnered with Coinfirm, a provider of anti-money laundering data.
Founder of Cardano and IOHK, Charles Hoskinson, recorded a short video to respond to Weiss Crypto Ratings on this.
1/ So. #Cardano curators decided to advance regulatory compliance of $ADA token, partnering with #Coinfirm, provider of (#AML)anti-money-laundering analytics.— Weiss Crypto (@WeissCrypto) August 25, 2021
Bad move all around, disappointing. Here's why: (THREAD)
Cardano partners with Coinfirm to advance FATF compliance
On Aug. 24, the Cardano Foundation inked a partnership deal with Coinfirm, a provider of AML (anti-money laundering) and CFT (combating the financing of terrorism) data to ensure Cardano will be fully compliant with the guidelines of the international FATF (Financial Action Task Force) regulator.
Chief of Technical Integrations at Cardano Mel McCann believes that, in order to achieve mass adoption on regulated markets, a cryptocurrency must have AML/CFT analytics.
What Coinfirm does is provide crypto exchanges, custodians and other sorts of third-party companies to track the history of coins held in the wallets of users. Now, this will be available for ADA as well.
Weiss Crypto slams Cardano for this
Weiss Crypto has called this a "bad move all around" and added that it was disappointing, offering an explanation for its position. The analytics agency believes that this step will push Cardano and ADA to "choking to death" after bringing excessive regulation on itself, as happened to the banking system.
Another negative effect this will certainly have in the future, according to Weiss Crypto, is that this step makes the Cardano blockchain a "censorship-prone, politicized, and manipulated network."
Facebook's Diem and CBDCs can work much better here, the tweet says, if Cardano wants to go down this route.
This move is the exact opposite of that, as it is well known that so-called "AML" laws are put in place by the high priests of finance to ensure nothing escapes their view. As we said in the intro, bad move all around, disappointing.
Financial elites, Weiss Crypto added, will never accept the crypto industry; therefore, a crypto platform playing by their rules will only ensure its death in the future.
Charles Hoskinson posts a video response
The Cardano founder responded that partnerships like these are important since they provide clarity, a lot of business and technical requirements and allow blockchain companies (Cardano in this particular case) to make software better for everyone everywhere and allow Cardano to see more adoption in all regulated and non-regulated industries around the world.
August 26, 2021