By Nathan Ferguson
Charles Hoskinson, the founder of Cardano, has reacted to criticism made on the recent collaboration between Cardano Foundation as well as Coinfirm by stating that the step was necessary for ADA adoption. The network announced its association with the blockchain analytics providing firm on the 24th of August. In the announcement, it said that the analytics of Coinfirm are being used to be sure about the compliance with programs like guidelines of Financial Action Task Force and the 6th directive of Anti Money Laundering.
The announcement added that the services and tools delivered by Coinfirm allow every custodian, third-parties, and exchanges to unambiguously track ADA’s history, which their wallet holds. Yesterday Weiss Crypto, a subdivision of Weiss Ratings (a provider of financial ratings), criticized Cardano rigorously through a Twitter thread, mentioning that the step was wrong among all previously taken. It noted that the banking system got choked due to extreme regulations, and ADA is proud in announcing that they willfully follow in the footsteps of those regulators.
Weiss Crypto’s criticism signifies it to have been greatly irritated by the firm‘s move to comply with the regulations. It further mentioned that Cardano is shortly to become a network that will be immune to get manipulated or politicized. It criticized the network by noting that it can have better instruments for this purpose, like Diem of Facebook and so on. Weiss Crypto moved to say that when some decentralized crypto programs get together for regulatory compliance, it will make sure about just one thing, which is their demise.
The Cardano’s creator and co-founder of Ethereum replied via a video. He focused on the point that the aim of the network has always been to enhance the layers, constructing modules, as well as building ecosystems for making improvements in its correspondence with the local regulations. He explained his stance by expressing that it doesn’t matter whether a user belongs to Japan, China, or the United States as the system’s base layer doesn’t bother about that. The user can add the specific metadata and identity along with all the other things. Subsequently, those things enable him to comply with his business domain which may or may not be regulated.
These partnerships have a lot of weightage, he elaborated, because they deliver transparency. A lot of business and technical requirements are also acquired by such collaborations. He concluded that by having assistance from such linkages, Cardano gets more adoption across the industry.