Cardano (ADA) creator Charles Hoskinson hits back over new crypto partnership
Following anti-money laundering measures
The Cardano Foundation announced on Tuesday that the company intends to comply with anti-money laundering (AML) measures. Accordingly, the company has signed a partnership with blockchain analytics provider Confirm. The partnership aims to allow exchanges, custodians and other third parties to track the history of Cardano’s native cryptocurrency, which is currently being held in their wallets, Dailyhodl.com reports.
The company believes that rigorous regulatory compliance will drive early adoption by users of the Cardano blockchain, which is designed for peer-to-peer transactions and smart contracts using ADA.
Hoskinson’s mission: a multi-chain ecosystem
Weiss Crypto, a subsidiary of the financial ratings firm Weiss Ratings, criticised it vociferously via a thread on Twitter, describing it as a “bad move all around”:
“The excessive regulation is how the banking system was choked to death. With this announcement, it would seem ADA is proudly announcing they want to follow in their footsteps.”
Ethereum co-founder and Cardano creator responded with a video message on the thread, and emphasised that “the point and the purpose has always been building in layers, building modules, building ecosystems” that enables compliance with local regulations.
“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 kinds of other things and those other things give you the ability to be in compliance with your business domain, regulated or otherwise.
And that’s the reason these partnerships are important. They provide clarity. They provide a lot of business and technical requirements, and they allow us to make the software better for everyone everywhere, and Cardano to get more adoption in all industries, regulated and unregulated.”
The price of ADA has significantly increased over the past month, reaching an all-time high of $2.92 on Sunday. Currently, the token has a market capitalisation of more than $88 billion (~£63 billion), making it the third largest cryptocurrency ahead of Binance Coin (BNB).
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