Cardano now in the 100% regulatory – Do cryptocurrency transaction tracking tools that can help authorities track cryptocurrencies necessarily hurt the decentralization of projects like Cardano (ADA
)? The latter wants to comply with current regulations, but this “commendable” initiative is far from pleasing everyone.
Cardano, the heir to the banks: ADA takes the cake
In a release
on August 24, 2021, Cardano announced its partnership with blockchain analytics provider Coinfirm. The information and analytics provided by the latter will be used to ensure ADA’s compliance with existing regulatory frameworks, such as the Sixth Anti-Money Laundering Directive and Financial Action Task Force (FATF) guidelines. ”
The tools and services provided by Coinfirm allow each exchange, custodian and any other third party to clearly track the history of ADAs held in their portfolio. “
The move has angered some in the cryptosphere, including Weiss Crypto, the subsidiary of financial ratings firm Weiss Ratings, which shared its criticism
on Twitter on August 25. The collaboration would be a “bad decision overall”. <img width=”536″ height=”304″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%20536%20304’%3E%3C/svg%3E” alt=’Twitter post by Weiss Crypto criticizing Cardano’s (ADA)decision to comply with current regulations’ /><img width=”536″ height=”304″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/image-23..png” alt=’Twitter post by Weiss Crypto criticizing Cardano’s (ADA)decision to comply with current regulations’ />Post by Weiss Crypto – Source: Twitter
Weiss Crypto went so far as to describe the ADA as following in the footsteps of the banks :
“Over-regulation is how the banking system has been choked. With this announcement, it would appear that the ADA is proudly announcing that it wants to follow in their footsteps.”
For Weiss Crypto, this step towards regulatory compliance makes Cardano a blockchain “closer to becoming a network subject to censorship, politicization and manipulation.”
Weiss Crypto recalls the main goals of blockchain and crypto projects, tackling Cardano on this desire to provide a means of ADA control by authorities:
“It is about building a new financial and economic layer, free from the control and repression of those who have brought our global economy to the brink of total failure and can only be sustained by excessive centralized intervention and aggressive.”
ADA is not above the law, neither are other cryptocurrencies
Cardano founder Charles Hoskinson responded to criticism of the partnership, citing the need for regulatory compliance to increase ADA adoption:
“And that’s why these partnerships are important. They provide clarity. They satisfy a lot of business and technical requirements, and they allow us to make the software better for everyone, everywhere and get Cardano more widely adopted in all industries, regulated and unregulated.”
Dave Dionisio, Cardano’s ambassador at the Cardano Foundation, meanwhile, attacked Weiss Crypto’s critics head-on, stating that it thinks it is above the law:
“WeissCrypto thinks that Cardano developers and ALL of its users should simply go underground and become fugitives from law enforcement. AML [anti-money laundering] laws are outdated to solve tomorrow’s problems, but it’s funny how some [cryptosphere] players think they are untouchable and above the law.”
Weiss Crypto’s acidic criticism didn’t affect ADA’s price, however, which has surpassed the $3 mark. While some cryptosphere players want a clean break from the traditional monetary and financial system, others, like Hoskinson, are lucid, recognizing that such an ambition is limited by existing laws set and enforced by traditional system players.
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