Cardano’s New Crypto Partnership With Confirm Faces Major Criticism

Cardano Foundation’s announcement of its partnership with Confirm, an analytics provider, raised a lot of scrutiny in recent times. Through the partnership, custodians, exchanges, and other third parties can track the history of Cardano’s native ADA crypto held in their wallets. 

Following the reveal, there have been major concerns aired on the partnership by Weiss Crypto.

Photo by Executium on Unsplash

What the Weiss Criticism Entailed

Charles Hoskinson, the founder of Cardano, believes that partnering with Confirm will bring more adoption to the Cardano blockchain. After all, it was designed to assist peer-to-peer transactions and smart contracts using ADA. 

But, Weiss Crypto believes that the banking system has starved to death for excessive regulation. Due to this, Cardano is closer to becoming a censored, politicized, and manipulated network.

The whole point of crypto was to build a new financial and economic layer free from control by any form of a government authority. IOHK’s move goes precisely against this, and the “AML” laws will ensure nothing escapes the regulator’s view. According to Weiss, these same people are why the economy of the world, in general, is suffering.
It should be an individual’s project decided to adopt these rules and not those of decentralized networks. Financial elites will never accept the crypto industry, and hence obeying the set rules will only see to it that the project fails. 

Charles Justifies IOHK’s Move

Hoskin replied to the criticism via Twitter. He mentioned, first of all, that the goal is, and has always been, to create layers, modules, and ecosystems. 

So even if you’re from the USA or China, Japan, wherever you are not the primary layer of the system, you can add identity and information. All sorts of other things, and these things allow you to comply, regulate or not, with your business.

Those collaborations are vital for this reason. They ensure clarity, provide a lot of business and technical requirements to Cardano. Also, they allow the team to improve the software experience for all users. All these pointers see that the company achieves more adoption. It can encompass both regulated and unregulated industries.

Regulation is Still Important

Digital currencies provide the policymakers and consumers with both challenges and opportunities. Regulators have to work together with tech professionals to tackle these crimes. It will ensure that their legislation is at pace with the advancements. Regulators must also have future legislation appropriate for specific purposes.

Besides, cooperation is critical because digital assets legislation will keep track of these rapid advancements. This they can achieve through international cooperation, local authorities, and technologically equipped bodies.

The inevitable future is digital currencies. Hence international and national collaboration is necessary to address issues with cryptocurrency crime.