Weiss Crypto has spoken out about Cardano’s drive to achieve regulatory approval for its ADA token, and the firm does not approve.
On August 25, ratings firm Weiss Crypto posted a lengthy tweet on Cardano’s recent controversial partnership with Coinfirm, labeling the move as disappointing.
On August 24, the Cardano Foundation integrated Coinfirm’s AML (anti-money laundering) analytics for its ADA token for compliance with Financial Action Task Force (FATF) guidelines
Weiss Crypto does not see this as being a good move as it sees Cardano following in the footsteps of an excessively regulated banking system.
“Cardano curators decided to advance regulatory compliance of ADA token, partnering with Coinfirm, provider of anti-money-laundering analytics. Bad move all around, disappointing.”
The end of Cardano decentralization?
Weiss elaborated that this move could ultimately turn Cardano into a centralized network and there will be better ones emerging such as Facebook’s proposed cryptocurrency, Diem, or central bank digital currencies (CBDCs).
“While still a free and decentralized network, this brings Cardano closer to becoming a censorship-prone, politicized, and manipulated network,”
The ratings firm added that 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.”
Weiss stated that it is well known that AML laws are put in place by the “high priests of finance” to ensure nothing escapes their view. Essentially all transactions can and will be monitored by financial regulators. A common practice with banks is to impose limits on amounts that can be transferred, all in the name of AML.
The disapproval continued with Weiss adding that the onus should be on individual projects to comply with regulatory frameworks, not decentralized networks.
“The established financial elites will NEVER accept the new kid in the block AKA the crypto industry. If you play by their rules, that will only guarantee your demise.”
Regulation is needed
Cardano fans responded largely in disagreement claiming that any crypto project needs to be regulated now to achieve widespread adoption.
In the partnership announcement, head of technical integrations at the Cardano Foundation, Mel McCann, stated:
“AML/CFT analytics is essential for a cryptocurrency to receive mass adoption within regulated markets. The tools and services provided by Coinfirm enables every exchange, custodian, and all other third-parties to clearly track the history of ADA held in their wallets.”
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