The Cardano Foundation has partnered with RegTech and blockchain analytics provider Coinfirm to carry out anti-money laundering and terrorist financing analytics while enhancing the security of the network.
The Cardano Foundation, a Non-Profit organization that oversees the progress of the Cardano network and its cryptocurrency ADA, recently announced the news via a press release issued on the 24th.
The blockchain platform would be fully in compliance with the FATF’s (Financial Action Task Force) guidelines after implementing AML/CFT analytics provided by Coinfirm.
Cardano became the third-largest cryptocurrency by market capitalization a few days after the company announced a network update “Alonzo’ that will formally introduce smart contracts to the system. It currently has a market cap of $80 billion with a reported user base of 1.3 million.
Mel McCann, Head of Technical Integrations at Cardano Foundation said in a statement:
“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.”
Also, Coinfirm would provide AML/CFT analytics to all assets minted on the Cardano blockchain, not just the native cryptocurrency ADA. Charles Hoskinson, the founder of Cardano, revealed that the number of exploits increased about ten times compared to just a month ago due to the recent ADA Rally.
The company also noted in the press release that the growing adoption of crypto assets has led to widespread theft and fraud with an increasing level of sophistication in hacks.
Sachin Dutta, Head of Marketing at Coinfirm said:
“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.”