updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Weiss Crypto has condemned the Cardano Foundation’s recent integration of Coinfirm’s AML/CFT analytics solution into the network. Weiss has argued that the move is a bad and disappointing one, as it takes Cardano a step closer towards becoming a “censorship-prone” project, according to a Twitter thread on August 25, 2021.
As reported by BTCManager on August 24, Cardano announced the integration of Coinfirm’s anti-money laundering and counter terrorisms financing analytics tools into the Cardano protocol, in a bid to make ADA and other Cardano-based crypto assets regulatory compliant.
“AML/CFT analytics is essential for a cryptocurrency to receive mass adoption. The tools and services offered by Coinfirm enable every exchange, custodian, and all other third-parties to clearly track the history of ADA held in their wallets,” declared Cardano.
In the latest development, Weiss Crypto, the digital assets arm of Weiss Ratings, a U.S.-based financial rating agency established in 1971, has condemned Cardano’s push towards better regulatory compliance, describing it as a bad and disappointing move that’s against the ethos of crypto and blockchain technology.
Weiss tweeted:
Notably, Charles Hoskinson, the creator of Cardano has responded to Weiss Crypto’s criticisms, making it clear that the idea of the partnership is to make it easier for projects running on the network to comply with regulations, as the base layer itself does not care about these regulatory requirements.
“The point and the purpose has always been building in layers, building modules, and ecosystems that foster compliance with regulations. So while the base layer of the system doesn’t care if you are from the U.S. or China, wherever, what you can do is add identity and metadata, and all kinds of other things and those other things give you the ability to be in compliance with your business domain, regulated or otherwise,” stated Hoskinson.
“And that’s the essence of these partnerships. They provide clarity. They provide a lot of business and technical requirements, and they allow us to make the software better for everyone everywhere, and Cardano to get more adoption in all industries, regulated and unregulated,” he added.
Ahead of the September 7, 2021, launch of the Alonzo upgrade, which will bring smart contracts support to Cardano, the team has hinted that the ERC-20 token converter, which will serve as a bridge between Ethereum and Cardano, will soon go-live in testnet.
At press time, Cardano’s ADA is exchanging hands for $2.61, with a market cap of $83.75 billion, according to CoinMarketCap.
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Charles Hoskinson, the Co-Founder and CEO of IOHK (the company that is responsible for the research and development of the Cardano protocol), has responded to Weiss Crypto Ratings’ critique of a recent partnership.
On August 24, Cardano Foundation, which is “an independent Swiss-based non-profit that oversees and supervises the advancement of Cardano”, announced that it had selected the RegTech and blockchain analytics firm Coinfirm to “enhance the security of the crypto and blockchain economy”.
The press release went on to say that “by deploying advanced AML/CFT analytics, this partnership will ensure that Cardano is able to be in full compliance with the FATF’s (Financial Action Task Force) guidelines, 6AMLD and other supranational and national regulations”.
Mel McCann, Head of Technical Integrations at Cardano Foundation, had this to say:
“AML/CFT analytics is essential for a cryptocurrency to receive mass adoption within regulated markets. The tools and services provided by Coinfirm enables every exchange, custodian, and all other third-parties to clearly track the history of ada held in their wallets.
“We are proud to work with Coinfirm due to their high quality results and product offerings as the first analytics solution live on the Cardano blockchain, the partnership with Coinfirm represents our continued dedication to supporting the adoption of the Cardano blockchain.“
In a series of tweets published on August 25, Weiss Crypto Ratings criticized Cardano Foundation for partnering with Coinfirm.
Weiss accused Cardano of following in the footsteps of the banking system by agreeing to excessive regulations, a move the agency said led to being “choked to death.”
The ratings agency said Cardano’s decision brought Cardano closer to being a “censorship-prone, politicized, and manipulated” network. Weiss argued individual projects, rather than entire decentralized networks such as Cardano, should be liable for regulatory compliance.
In reply, Hoskinson posted a video to Twitter, saying the partnership with Coinfirm provided greater clarity for the market and Cardano users.
According to a report by The Daily Hodl, Hoskinson said:
“The point and the purpose has always been building in layers, building modules, building ecosystems.
“So while the base layer of the system doesn’t care if you’re from the United States or China, Japan, wherever, what you can do is add identity and metadata, and all kinds of other things, and those other things give you the ability to be in compliance with your business domain, regulated or otherwise.
“And that’s the reason these partnerships are important. They provide clarity. They provide a lot of business and technical requirements, and they allow us to make the software better for everyone everywhere, and Cardano to get more adoption in all industries, regulated and unregulated.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
On August 25, ratings firm Weiss Crypto posted a lengthy tweet on Cardano’s recent controversial partnership with Coinfirm, labeling the move as disappointing. Weiss Crypto has spoken out about Cardano’s drive to achieve regulatory approval for its ADA token, and the firm does not approve.
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On August 24, the Cardano Foundation integrated Coinfirm’s AML (anti-money laundering) analytics for its ADA token for compliance with Financial Action Task Force (FATF) guidelines
Weiss Crypto has spoken out about Cardano’s drive to achieve regulatory approval for its ADA token, and the firm does not approve.
On August 25, ratings firm Weiss Crypto posted a lengthy tweet on Cardano’s recent controversial partnership with Coinfirm, labeling the move as disappointing.
On August 24, the Cardano Foundation integrated Coinfirm’s AML (anti-money laundering) analytics for its ADA token for compliance with Financial Action Task Force (FATF) guidelines
Weiss Crypto does not see this as being a good move as it sees Cardano following in the footsteps of an excessively regulated banking system.
“Cardano curators decided to advance regulatory compliance of ADA token, partnering with Coinfirm, provider of anti-money-laundering analytics. Bad move all around, disappointing.”
Weiss elaborated that this move could ultimately turn Cardano into a centralized network and there will be better ones emerging such as Facebook’s proposed cryptocurrency, Diem, or central bank digital currencies (CBDCs).
“While still a free and decentralized network, this brings Cardano closer to becoming a censorship-prone, politicized, and manipulated network,”
The ratings firm added that the whole point is to build a new financial and economic layer, “free from the control and repression of those who have brought our world economy to the brink of total failure.”
Weiss stated that it is well known that AML laws are put in place by the “high priests of finance” to ensure nothing escapes their view. Essentially all transactions can and will be monitored by financial regulators. A common practice with banks is to impose limits on amounts that can be transferred, all in the name of AML.
The disapproval continued with Weiss adding that the onus should be on individual projects to comply with regulatory frameworks, not decentralized networks.
“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.”
Cardano fans responded largely in disagreement claiming that any crypto project needs to be regulated now to achieve widespread adoption.
In the partnership announcement, head of technical integrations at the Cardano Foundation, Mel McCann, stated:
“AML/CFT analytics is essential for a cryptocurrency to receive mass adoption within regulated markets. The tools and services provided by Coinfirm enables every exchange, custodian, and all other third-parties to clearly track the history of ADA held in their wallets.”
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