The Cardano Foundation chose Coinfirm to analyze transactions with ADA cryptocurrency and tokens, and comply with anti-money laundering (AML) and terrorist financing regulations.
According to
articlepublished on the Cardano Foundation’s website, the partnership with Coinfirm will help the project fully comply with the Financial Action Task Force (FATF) guidelines, the 6th EU Anti-Money Laundering Directive (6AMLD) and other regulatory requirements.
Mel McCann, Head of Technical Integration at Cardano, believes Coinfirm’s tools will be an important part of Cardano’s strategic roadmap, enhancing the capabilities of its ecosystem. In addition to ADA, Coinfirm will provide trade analytics for all tokens created on the Cardano blockchain. This will make it easier for law enforcement to interact with third-party virtual asset service providers (VASPs) and find stolen cryptocurrencies.
The Cardano Foundation believes it is necessary to implement services to verify compliance with AML rules. Coinfirm’s tools will enable every exchange, custodian, and any third party to transparently track ADA transactions. McCann said he was delighted to be working with Coinfirm to offer the first solution for analyzing the Cardano blockchain. This will prove to governments, financial institutions and users that the project is taking reasonable steps to reduce the risk of illegal transactions. This will set the stage for the massive distribution of cryptocurrencies in regulated markets.
“The integration of Coinfirm’s solution with the Cardano protocol will ensure that people are using clean ADA with an unblemished reputation. The same goes for other Cardano-based cryptoassets. This will facilitate the smooth adoption of the Cardano protocol among financial institutions that can now be confident of regulatory compliance, ”said Sachin Dutta, Head of Marketing at Coinfirm.
In September, Cardano developers are planning to roll out a major network update – Alonzo, within which the smart contracts feature will be activated. This will allow the creation of decentralized applications based on Cardano. In March, IOHK CEO Charles Hoskinson revealed that about a hundred companies have already started migrating from Ethereum blockchain to Cardano.
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