The Cardano Foundation, the team behind the development of the ADA ecosystem, has teamed up with United Kingdom-headquartered blockchain analytics company Coinfirm to better ensure the regulatory compliance of the token.
First Real-Time AML/CFT Monitoring Solution Live On Cardano
The Cardano Foundation will be monitoring all activities on the ADA network for signs of money laundering, terrorism financing, and other nefarious activities, thanks to Coinfirm’s AML solution.
The two firms have entered into a strategic partnership, according to an August 24 official announcement that will see Coinfirm’s blockchain-agnostic analytics system integrated on Cardano. This collaboration will help ADA remain compliant with Anti-Money Laundering regulations issued by the Financial Action Task Force’s (FATF), and other necessary requirements.
As per Mel McCann, the head of Technical integrations at the Cardano Foundation, Coinfirm’s AML and analytics tools will ensure transparency of the ADA blockchain, subsequently boosting the crypto’s mainstream adoption.
“AML/CFT analytics is essential for a cryptocurrency to receive mass adoption within regulated markets. The tools and services provided by Coinfirm enables every exchange, custodian, and all other third-parties to clearly track the history of ada held in their wallets.”
McCann described the latest tie-up with Coinfirm as proof of the non-profit organization’s commitment to “supporting the adoption of the Cardano blockchain.”
Positive Development For Cardano
Arguably, 2021 has been a breakthrough year for cryptocurrencies. The rising popularity of crypto assets has, however, resulted in the sophistication of crypto-related scams. As such, many platforms in the industry have fallen victim to various malicious activities by bad actors.
Cardano creator Charles Hoskinson, for instance, recently warned users about the increase in scams and misinformation within the Cardanoverse. Hoskinson indicated that the exploits had grown tenfold from a month ago, owing to ADA’s impressive rally in anticipation of the smart contracts launch.
With the forthcoming Alonzo deployment, Cardano will be able to onboard an array of coins directly on the blockchain. The Coinfirm partnership will make sure AML/CFT tools are implemented with all these different assets that will be minted on Cardano.
Coinfirm’s marketing head, Sachin Dutta, emphasized the significance of this development for Cardano’s infrastructure and security of the whole blockchain sector.
“Coinfirm is excited to integrate the Cardano protocol with our AML Platform to ensure that counterparties using the ada cryptocurrency and other assets created on Cardano are not tainted by illicit funds. This provides a seamless transition for financial institutions to uptake the protocol with scale, reducing the concern of AML/CFT compliance,” Dutta said.
