For most blockchains, staying in business is a priority, and for that to happen, there is a need to adhere to regulations. Security of investors’ assets on a blockchain network is also an important factor that can influence the success of such a platform. It is in light of this that Cardano decided to team up with Coinfirm to improve security on its platform and also its native crypto. Cardano’s agreement with the blockchain analysis company has generated debate as investors are still unclear regarding the impact of the collaboration. However, traders on the blockchain would be grateful for the team up considering the various benefits it offers.
The need for cryptos all over the world to be governed brought about this partnership as the alliance helps Cardano keep to crypto regulation guidelines and legislation. By doing so, it is also easier for the blockchain network to adhere to the various regulations in several markets. Their compliance would give them access to different geographical markets and economies thereby contributing to the expansion of their reach. This simply implies that the more users the network gets, the more chances it has at attaining and retaining success. Even its native coin’s value is bound to appreciate as more investors would trust the token. All these and many more are what the blockchain stands to gain from the partnership.
The Importance of The Partnership
Cardano as a blockchain intends to be a part of every regulated market in the world. For this to be achieved, they would need to obey all the restrictions and regulations present in the different markets. This is where Coinfirm comes as the analysis company helps to make it happen with the services they offer. Coinfirm would provide Cardano AML/CFT analytics for the digital assets present on the platform. This service makes it easier for cryptocurrency to be used in markets with regulations. It would also cover assets coined before its implementation and those of the coming years.
This development would make it possible for criminal activities to be located by security agencies when carried out on the network. Compliance with AML would lessen the occurrence of cyber-attacks and criminal hacks on the network and guarantee the protection of investors while trading in regulated markets. Interestingly, as wonderful as the partnership sounds, it has not been widely welcomed by a major quota of Cardano users. The protocol which would be used by the blockchain is now seen as a means of surveillance on users. It is believed to be a tool by which the government monitors its citizens and their financial transactions.
Due to the partnership, all transactions involving ADA and any wallet would be tracked for security purposes. Investors feel that the main purpose of cryptocurrency, which is to provide a means for individuals to control the movement and storage of their finances without external involvement, has been defeated. However, the knowledge that transactions are being monitored helps to guarantee a level of trust in cryptocurrency.