• Cardano Foundation announces Coinfirm partnership to ‘improve crypto security.’

  • The Cardano Foundation has teamed with Coinfirm, a blockchain analytics company, to deploy anti-money laundering and counter-terrorist financing (AML/CFT) analytics. Coinfirm issued a statement stating that

    “To improve the security of the crypto and blockchain economy, the Cardano Foundation, an independent Swiss non-profit that controls and supervises the progress of Cardano, has hired Coinfirm, a renowned RegTech and blockchain analytics provider.”

    What is the significance of this collaboration?

    The increasing popularity of crypto-assets has influenced the sophistication of crypto-scams in the market. As previously stated, many platforms are victims of various nefarious operations such as money laundering.

    Cardano will be kept “in accordance with the FATF’s (Financial Action Task Force) rules, 6AMLD, and other supranational and national regulations” as a result of the collaboration.

    Mel McCann, Cardano Foundation’s Head of Technical Integrations, added,

    “AML/CFT analytics are required for a cryptocurrency to gain widespread acceptance in regulated marketplaces. Every exchange, custodian, and all other third parties can clearly follow the history of ADA kept in their wallets thanks to Coinfirm’s tools and services.”

    Furthermore, this partnership is a “continued commitment to helping the adoption of the Cardano blockchain,” according to the executive.

    Furthermore, Cardano Foundation CEO Frederick Greggard hopes to add one billion participants to the network within the next five years. This is consistent with the Foundation’s “mass adoption” ambition.

    Needless to say, AML has become a critical component for protocols operating in regulated marketplaces around the world. Indeed, IOHK CEO Charles Hoskinson recently warned customers about an increase in scams and misinformation in the space.

    In the video, he claims that the number of exploits has surged tenfold since a month ago because to ADA’s enormous rally. Cardano and its native coin, ADA, have been trending for quite some time now, following their recent surge and much-anticipated entrance in Japan.

    A legal requirement

    In the grand scheme of things, the crypto-industry has frequently been embroiled in squabbles with various regulatory bodies. Take, for example, South Korea.

    Not long ago, Eun Seong-soo, Chairman of the Finance Committee, stated that over 200 cryptocurrency exchanges faced closure. These dangers were linked to many entities’ failure to comply with harsher regulations before the end of the grace period.

    Other agencies have also implemented stronger KYC and AML procedures, such as background checks, transaction monitoring, and reporting.

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