The founder of Cardano, Charles Hoskinson, responded to criticism about the Cardano Foundation’s association with Confirm, saying it was necessary for ADA adoption.
The Cardano Foundation announced its partnership with blockchain analytics provider Confirm on Tuesday, which It will enable Confirm’s analytics to be used to ensure compliance with frameworks such as the 6th Anti-Money Laundering Directive and Financial Action Task Force guidelines.
“The tools and services provided by Coinfirm allow each trade, custodian and all other third parties to clearly track the ADA history stored in their wallet,” the ad reads.
However, not everyone was happy with the collaboration. Thursday, Weiss Crypto, the subsidiary of the financial rating company Weiss Ratings, criticized him intensely through a thread on Twitter, describing him as a “bad move in every way”:
“Over-regulation is how the banking system was suffocated to death. With this announcement, it would appear that ADA is proudly announcing that they want to follow in his footsteps. “
Weiss Crypto appeared to be quite irritated with Cardano’s move towards regulatory compliance, as it claimed that it is now “closer to becoming a network prone to censorship, politicized and manipulated.”
“If you go this route, there are much better tools for the job: Diem from Facebook, CBDC and the networks that will emerge,” 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
4 / The idea 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, capable of sustaining itself only with an excessive and aggressive centrally planned intervention.
Weiss Crypto went on to suggest that if some cryptocurrency projects or decentralized networks were to work towards regulatory compliance, it would “only guarantee their demise.”
The co-founder of Ethereum and creator of Cardano replied with a video message on the thread and emphasized that “The point and purpose has always been to build in layers, build modules, build ecosystems” that allow compliance with local regulations. He said:
“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 sorts of things, and those other things give you the ability to comply with the domain of your business, regulated or not “
“And that’s why these partnerships are important. They provide clarity. They provide a host of business and technical requirements, and allow us to improve the software for everyone everywhere, and for Cardano to gain greater adoption across all industries, regulated and unregulated, ”concluded Hoskinson.
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
So Weiss Crypto thinks that Cardano developers and ALL of its users should go underground and become fugitives from law enforcement. Yes, AML laws are outdated to solve tomorrow’s problems, but it’s funny how some in the crypto industry think they are untouchable and above the law.
Amid anticipation of Cardano smart contracts, which are scheduled to launch on September 12, the price of ADA has increased 99% in the last 30 days, increasing from USD 1.27 on July 27 around USD 2.53 at the time of writing this article.
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Charles Hoskinson responds to criticism of Cardano’s partnership with Confirm