The Cardano blockchain recently announced a partnership with a crypto-metrics analytics services provider Coinfirm. The non-profit enterprise is going to make the network AML and CFT complaints. This will allow the financial regulators to track the complete history of ADA tokens and works for several cryptocurrency exchange platforms.
The biggest advantage of this new feature is that it is going to make Cardano FATF approved and compliant with the 6th Anti-Money Laundering Directive. The partnership was made public on Aug 24th. However, some stakeholders are not happy with the news. The subsidiary of Weiss Ratings has recently posted a thread critiquing the move on Twitter.
Weiss Crypto is a dedicated crypto market analytics provider that is a branch of financial analysis service Weiss Ratings. A new Twitter thread posted by WC sheds light on how Cardano stands to lose all its credibility if it goes on with compliance. As per WC, there are other crypto projects like Facebook Diem, stablecoins, and CBDCs that are good enough for providing such regulated avenues.
The WC thread also claims that the whole point of having a decentralized network and cryptocurrencies is that the users can break away from the traditional financial infrastructure that has failed economic development around the world. As per WC, the new FATF compliant Cardano network will become highly politicized and prone to aggressive centralized intervention.
Charles Hoskinson Responds to Criticism
Cardano founder Charles Hoskinson recently commented on the criticism that he has received from the Weiss Crypto. As per him, the baseline of the Cardano network does not care that the users are from which country or region. Meanwhile, the financial regulations protocols are going to protect threat actors.
He further adds that many institutions and state organizations will be able to use the network in the future due to the clarity and transparency. Dave Dionisio, who is a Cardano Ambassador, claims that it is not right for crypto traders to think that they are above the law under any circumstances. Dionisio also acknowledges that the current AML regulations are outdated and unfit for implementation on any blockchain or cryptocurrency infrastructure.