Charles Hoskinson responds to criticism about the partnership with Coinfirm

Cardano founder Charles Hoskinson responded to criticism of the Cardano Foundation’s partnership with Confirm and said it was necessary for the adoption of the ADA.

The Cardano Foundation on Tuesday announced a partnership with a blockchain analyst that will use Confirm’s analytical tools to ensure compliance with frameworks such as the 6th Anti-Money Laundering Directive and the Financial Working Group’s guidelines.

“The tools and services provided by Coinfirm allow each exchange, administrator and all other third parties to clearly follow the history of the ADA.”

It stands in the announcement.

However, not everyone welcomed the move. On Thursday, Weiss Crypto, a subsidiary of the financial company Weiss Ratings, loudly criticized it through a thread on Twitter and described it as a “bad move”.

“Over-regulation is the way the banking system has been suffocated to death. With this announcement, it would seem that the ADA is proud to announce that it wants to follow in the same footsteps. “

Weiss Crypto added that Cardano is now “Closer to becoming a censor-prone, politicized and manipulated network.”

“If you go this route, there are much better tools for this job – Facebook Diem, CBDC and the networks that will emerge.” it is written in the article.

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

Weiss Crypto further suggested that if some crypto projects or decentralized networks were to comply with the regulations, “it would only guarantee extinction”.

Charles Hoskinson’s reaction

ETH co – founder and creator of Cardano responded with a video message in a thread, stressing that “The goal and purpose has always been to build in layers, to build modules and ecosystems that enable compliance with local regulations“.

“So while the basic layer of the system doesn’t matter if you’re from the United States or China, Japan, what you can do is add identity and metadata and all sorts of other things, and these other things will give you the ability to be consistent with your business domain, regulated or another, “

“And that’s why these partnerships are important. They provide clarity. They provide many business and technical requirements and allow us to improve software for everyone and everywhere, and Cardano to obtain greater adoption in all industries, both regulated and unregulated. ”

Hoskinson concluded.

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

Conclusion

In anticipation of Cardano’s smart contracts to be launched on September 12, the ADA’s price has risen 99% in the past 30 days, rising from $ 1.27 on July 27 to about $ 2.53 at the time of writing.