After days of criticism related to Cardano’s new compliance decisions, founder Charles Hoskinson finally fired back on FUDsters today with his latest video. In fact, in the said video, the Exec went so far as to explain how the new guidelines would not affect the Cardano protocol.
Here, it’s worth noting that Hoskinson’s video was posted shortly after Coin Bureau and Weiss Crypto questioned Cardano’s partnership with Coinfirm – a provider of AML analytics. According to the latter, the partnership is, for example, an “all round bad move” and “disappointing”.
1 / So. #Cardano’s curators have decided to drive compliance with the $ ADA token and are partnering with #Coinfirm, a provider of (#AML) anti-money laundering analytics.
Bad move all round, disappointing. Here’s why: (THREAD)
– Weiss Crypto (@WeissCrypto) August 25, 2021
However, the board defended the compliance tools in the interest of Cardano’s growth. He claimed that regulated companies had to ensure compliance in their own area. Even so, Hoskinson was quick to emphasize that these guidelines would not affect the Cardano protocol, the full-node Daedalus wallet, or the base layer of Cardano.
“It’s open source software that is completely decentralized. It is in a GitHub repository at some point in time. Anyone can take that off and take it further with their own brand, logo, and reputation. It is not proprietary in any way. “
When asked how KYC / AML would even be possible in such cases, Hoskinson told viewers to “think it through”. According to the founder of Cardano, it is no different from Bitcoin and Ethereum.
Are regulations now unavoidable?
Hoskinson also predicted that stricter regulations will be introduced in the DeFi space. The guidelines published by the Financial Action Task Force [FATF] March 2021 is one such example. The document highlighted the need for KYC guidelines for “Virtual Asset Service Providers”.
Even so, Hoskinson insisted that not all files on a system need to conform to a particular regime.
Oddly enough, Coinfirm has also claimed that Binance and XRP are also using its solutions. Meanwhile, blockchain analytics firm Crystal supports Blockchain Ethereum Classic, over 1500 ERC-20 tokens, and Bitcoin SV.
Mission one billion
It’s no secret that the third largest cryptocurrency by market cap is aiming to turn 1 billion people into Cardano users over the next five years.
However, certain requirements must be met for this. Hoskinson concluded the video by stating:
“But if our goal is to get Fortune 500 companies, government actors and billions of people to use the product, we have to accept that they will all use Cardano differently. And that means we need to have a variety of partners and tool chains and skills so that they can use the protocol differently. “
On August 31, Weiss Crypto announced that it would meet a representative from the Cardano Foundation to discuss AML solutions. No doubt Cardano watchers will be preparing for dramatic updates.