Regulatory compliance of Cardano en

Weiss Crypto has spoken out on Cardano’s push for regulatory approval for its ADA token, with the company expressing its disagreement.

On August 25, the rating firm Weiss Crypto published an extensive tweet on Cardano’s recent and controversial partnership with Coinfirm, calling the move disappointing.

One day before, the Cardano Foundation integrated AML analysis (anti-money laundering) from Coinfirm for your ADA token for compliance with Financial Action Task Force (FATF) guidelines.

Weiss Crypto doesn’t see this as a good move, as see Cardano following in the footsteps of an overly regulated banking system:

“Cardano’s curators decided to advance ADA token compliance by partnering with Coinfirm, an anti-money laundering analytics provider. Bad movement everywhere, disappointing ”.

Is it the end of Cardano decentralization?

Weiss explained that this move could, ultimately, turn Cardano into a centralized network and that better ones will emerge, such as the cryptocurrency proposed by Facebook, Diem or central bank digital currencies (CBDC):

“While it remains a free and decentralized network, this brings Cardano closer to becoming a network prone to censorship, politicized and manipulated.”

The rating firm added that the goal 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.”

Weiss said it is well known that the “high priests of finance” set anti-money laundering laws to ensure that nothing escapes their sight.

Essentially, all transactions can and will be monitored by financial regulators. A common practice with banks is to place limits on the amounts that can be transferred, all in the name of AML.

The disapproval continued with Weiss adding that responsibility should be on individual projects to comply with regulatory frameworks, not in decentralized networks:

Established financial elites will NEVER accept the new kid on the block, aka the crypto industry. If you follow their rules, that will only guarantee your disappearance ”.

Regulation is necessary

Cardano fans responded largely in disagreement stating that Any crypto project must now be regulated to achieve widespread adoption.

In the partnership announcement, Cardano Foundation Head of Technical Integrations Mel McCann stated:

“AML / CFT analysis is essential for a cryptocurrency to receive mass adoption within regulated markets. The tools and services provided by Coinfirm allow each exchange, custodian and all other third parties to clearly track the ADA history stored in their wallets. “

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Regulatory compliance of Cardano en

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