Cardano inventor Charles Hoskinson has addressed to criticism over the Cardano Foundation’s cooperation with Confirm by stating that the partnership was crucial for the adoption of the Cardano blockchain technology.
Earlier this month, the Cardano Foundation announced a partnership with the blockchain analytics provider Confirm. The partnership will see Confirm’s analytics used to ensure compliance with frameworks such as the 6th Anti-Money Laundering Directive and the Financial Action Task Force’s guidelines, among other initiatives.
In the announcement, it was stated that “the tools and services provided by Coinfirm enable every exchange, custodian, and all other third-parties to clearly track the history of ADA held in their wallet.”
However, the action was not universally embraced. The cryptocurrency unit of financial ratings agency Weiss Ratings slammed it in a scathing Twitter thread yesterday, calling it a “bad move all-around.”
“The excessive regulation is how the banking system was choked to death. With this announcement, it would seem ADA is proudly announcing they want to follow in their footsteps.”
Weiss Crypto seems to be extremely dissatisfied with Cardano’s move towards regulatory compliance, claiming that the cryptocurrency is now “closer to becoming a censorship-prone, politicized, and manipulated network” as a result of the decision.
“If you’re going down this route, there are far better tools for the job — Facebook’s Diem, CBDC’s and the networks they’ll spring up,” the post read.
4/ 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, able to be sustained only by excessive and aggressive centrally planned intervention.— Weiss Crypto (@WeissCrypto) August 25, 2021
Further, according to Weiss Crypto, some cryptocurrency initiatives or decentralized networks that work toward regulatory compliance will simply “guarantee their own demise.”
A video message on the thread was answered to by the Ethereum co-founder and Cardano creator, who highlighted that “the point and the purpose has always been building in layers, building modules, and building ecosystems,” which allows for compliance with local rules.
“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,” he said.
“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,” Hoskinson concluded.
So @WeissCrypto thinks that #Cardano devs and ALL of it’s users should just go underground and become fugitives from law enforcement. Yes, AML laws are outdated to solve the problems of tomorrow, but funny how some in crypto think that they are untouchable and above the law.— Dave Dionisio (@Dave_USA01) August 26, 2021
In anticipation of the debut of Cardano smart contracts on September 12, the price of ADA has increased by 99 percent in the last 30 days, rising from $1.27 on July 27 to roughly $2.53 at the time of writing. Cardano is a cryptocurrency that operates on the blockchain.