Cardano (ADA) recently took the step to start using a so-called compliance solution. A compliance solution is a way in which processes within a company can comply with the regulations as well as possible and to track criminals more easily.
Unfortunately, because the popularity of cardano has increased enormously in recent times, the activity of malicious people is also increasing. That’s how it is number of scammers that uses cardano at the moment very large. This new compliance solution will be an important step in eliminating such illegal activity on the network.
Cardano chooses Confirm
The Cardano Foundation, the non-profit organization responsible for managing the project, recently selected analytics firm Confirm to fulfill its role as a compliance solution.
This became known through a press release from Confirm. In this way it becomes possible for Cardano to comply with all requirements and regulations of local and international government agencies much more easily. Confirm will anti-money laundering and combating the financing of terrorism (AML/CFT) provide analyzes on the Cardano network.
????Great achievement to have @Coinfirm_io AML Platform integrated with the #Cardano protocol.
This increases the institutional capabilities of Cardano #blockchain and will help achieve mass adoption of #THERE IS crypto in regulated markets with the use of AML/CFT analytics. ???? https://t.co/lWsDCJIyxY
— Cardano Foundation (@CardanoStiftung) August 24, 2021
According to Mel McCan, head of technical integration within the team at the Cardano Foundation, such a step is necessary for the large-scale adoption of cardano.
“AML/CFT analyzes are essential for a cryptocurrency to gain mass adoption within regulated markets.”
It will also be possible for all exchanges, custodians and third parties to trace the history and origin of all ADA tokens. In this way, the Cardano Foundation hopes that the project will become more attractive to large institutions. At the same time, privacy is preserved so that not all information can end up in the hands of malicious parties.
Confirm will not only provide AML/CFT for the native token Add ADA, but for all tokens running on the Cardano blockchain. This ensures that, for example, the police can easily investigate theft and other crimes.
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