Cardano is once again in the spotlight, thanks to a recent deal. A partnership between Cardano Foundation and blockchain research company Coinfirm has been launched to improve the security of the network and the Cardano cryptocurrency ADA. There have been many discussions on this partnership both inside and outside of the industry. Many cryptocurrency enthusiasts are analyzing the situation and trying to figure out how it will affect Cardano and the market in general.
Cryptocurrencies are under increasing demand to be monitored, and an alliance was formed in reaction to this. Cardano will be fully compliant with 6AMLD and the Financial Action Task Force’s (FATF) rules if this is done. All while adhering to local, state, and federal requirements.
Need for this Collaboration
Cardano intends to engage in controlled industries across the globe, no mistake about it. That means it must be compatible with all of the rules that govern these regions. Coinfirm’s expertise will assist them in achieving this goal. As Mel McCann, Cardano Foundation’s Head of Technical Integrations, put it, “AML/CFT analytics are necessary for a digital currency to achieve broad acceptance inside regulated markets. For their strong findings and distribution channels, we are delighted to collaborate with Coinfirm because they are Cardano’s very first analytics provider.”
This will give Cardano AML/CFT analytics to ensure that all of Cardano’s holdings are protected from theft and fraud. Components that have previously been created before the collaboration will be affected, as well as any future holdings. Criminals can be tracked down on the network by security agencies.
To reduce the danger of operations getting disclosed or hijacked by fraudsters, AML compliance solutions are used. As a result, traders who engage within those regulated markets will feel more secure.
“The Coinfirm AML Solution will be integrated with the Cardano system to guarantee that payments utilizing the ADA digital currency and other Cardano-based commodities are not contaminated by illegal monies. This makes it easier for banking firms to use the system on a large scale, therefore lowering the burden of AML/CFT regulations.” – Sachin Dutta, Chief Marketing Officer of Coinfirm
Communities in Cardano React
Market reaction to Cardano’s decision has been fascinating. Lots of people think that the government will be able to monitor its citizens using this technology, but that isn’t the case. As a result, it goes against what crypto stands for, which is to give individuals sovereignty over their money without government intrusion.
Coinfirm’s intelligence services will make it possible to trace each ADA transaction ever made in a wallet. In addition to helping improve security, this information allows for the tracking of people and their financial movements.
Many have argued in opposition to this view, saying some amount of tracking is required for crypto to genuinely become widely accepted in society. When people know that payments can be traced, they will have more faith in crypto, individually and organizationally.