Charles Hoskinson, co-creator of Ethereum and creator of Cardano, is responding to criticism leveled by Weiss Crypto.
The Cardano Foundation announced on Tuesday that the company will comply with anti-money laundering (AML) measures by partnering with blockchain analytics provider Confirm. The partnership will enable exchanges, custodians, and other third parties to track the history of Cardano’s native cryptocurrency ADA that is being held in their wallets.
The company believes that rigorous compliance will boost adoption of the Cardano blockchain which is designed to power peer-to-peer transactions and smart contracts using ADA.
Weiss Crypto, the subsidiary of leading financial ratings firm Weiss Ratings, blasted the move in a series of tweets.
“Excessive regulation is how the banking system was choked to death. … [This partnership with Coinfirm] brings Cardano closer to becoming a censorship-prone, politicized, and manipulated network. … The whole point [of blockchain/crypto] 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.
… the onus SHOULD be on individual projects, not decentralized networks to adopt these… [because] 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.”
Hoskinson replied via Twitter,
“The point and the purpose has always been building in layers, building modules, building ecosystems.
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.”
— Charles Hoskinson (@IOHK_Charles) August 26, 2021
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/dani3315