A new partnership between Cardano and blockchain-based company Coinfirm has drawn criticism from its community. The Cardano-Coinfirm partnership will allow authorities to trace ADA transactions on the blockchain back to when it was created. This, according to the statement, will allow the apprehension of criminals and prevent illegal transactions on the platform. Comply with anti-money laundering (AML) regulations within regulations.
Although this move was made as a way to promote the adoption of the ADA by institutions, it was seen as a form of betrayal by the community. The most prominent of these criticisms was made by Weiss Crypto, a subsidiary of Weiss Ratings, a leading financial ratings company.
In this article, we will discuss:
Cardano faces criticism from the community
In a series of tweets, Weiss Crypto exposed his criticisms of this move. He pointed out that excessive regulation is what killed the banking system. That's why people are so suspicious of current banking systems and are turning to encryption. Now Cardano is allowing the same regulations that have paralyzed the banking system in its ecosystem.
1/ So. #Cardano curators decided to advance regulatory compliance of $ ISLANDS token, partnering with #Coinfirm, provider of (#AML)anti-money-laundering analytics.
Bad move all around, disappointing. Here's why: (THREAD)
— Weiss Crypto (@WeissCrypto) August 25
Weiss Crypto pointed out that this movement would make the blockchain political. Also opening it up to censorship and network manipulation. A follow-up tweet said that this defeats the entire purpose of the freedom that cryptocurrencies bring to the masses. Regulations like this would take away this freedom of control and repression from the people who already run today's global financial systems.
This brings Cardano closer to becoming a network prone to censorship, politicized and manipulated. If you're going down that road, there are much better tools for the job – Facebook's Diem, CBDCs and the networks they'll emerge.
Weiss Crypto's focus landed on the fact that AML laws are used to watch over people. Making sure they know what's happening in the financial markets at every step. Then he concluded by reiterating that this was a bad and disappointing play.
Charles Hoskinson responds to reaction
Cardano co-founder Charles Hoskinson used Twitter to respond to these criticisms via video. The co-founder began by stating that this is a completely agnostic protocol. Therefore, where a person is located does not matter to him.
Hoskinson said; “Although the base layer of the system doesn't care if you're from the US or Japan, from anywhere, what you can do is add identity and metadata, and all sorts of other things and these other things give you the ability to comply with the domain of your business, regulated or not. ”
“They provide clarity,” said Hoskinson of the partnership. “They provide a lot of business and technical requirements. And they allow us to make software better for everyone everywhere, and Cardano to get more adoption across all industries, regulated and unregulated. ”
Cardano Price (ADA)
ADA is currently still trading above its previous record. The currency that successfully grabbed the 3rd position of highest encryption by market capitalization continued to maintain its upward momentum. Currently trading at $2,58.
