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Cardano was in the news recently after the Foundation announced a collaboration with blockchain analytics provider Coinfirm. This partnership will see Cardano deploy Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) analytics. While this marks an important milestone to curb malicious activities, are there any concerns related to it? Is the base layer still neutral and apolitical?
Well, one analytics agency seems to think otherwise. In a series of recent tweets, Weiss Crypto took issue with the partnership and its implications, with the same soon triggering a response from Hoskinson himself.
1/ So. #Cardano curators decided to advance regulatory compliance of $ADA 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, 2021
The analytics agency believes that excessive regulation will eventually lead to Cardano and its native token “choking to death.” Just like the fate the banking system seems to have in store for itself.
What’s more, the firm also claimed that this partnership “brings Cardano closer to becoming a censorship-prone, politicized, and manipulated network.” Interestingly, similar criticisms have been hurled at Facebook’s Diem and CBDCs in the past.
According to Weiss Crypto, the whole point (behind decentralization) is to build a new financial and economic layer. A layer free from the control and repression of those who have brought the world economy to the brink of total failure.
The latest Cardano development, however, in the firm’s opinion,
“… is the exact opposite of that as it is well known that so-called “AML” laws are put in place by the high priests of finance to ensure nothing escapes their view. As we said in the intro, it bad move all around, disappointing.”
Irrespective of the project and the upside many associate with Cardano, the analytics firm cautioned,
“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.”
“Makes it better for everyone, everywhere”
Needless to say, IOHK CEO Charles Hoskinson was quick to respond to this criticism.
— Charles Hoskinson (@IOHK_Charles) August 26, 2021
“The point in the purpose has always been building in layers, building modules, ecosystems. The base layer doesn’t care if you’re from China, Japan, or the US. What you can do is add identity and metadata and all kind of other things. Those other things give you the ability to be in compliance with your business domain regulators or otherwise.”
According to Hoskinson, a partnership like this is important since it provides clarity to a lot of business and technical requirements. It also allows blockchain companies (Cardano, in this particular case) to make software better for everyone and everywhere. Finally, it encourages Cardano to get more adoption in all regulated and non-regulated industries around the world.
This certainly isn’t the first time Cardano or its Chief Executive has faced such comments, however. From being called a ‘ghost chain‘ to some doubting its entire mechanism, ADA and Cardano seem to have seen it all.
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