Cardano's Confirm relationship has been criticized, and Charles Hoskinson has responded.
Cardano's relationship with Confirm was attacked by Weiss Crypto, a subsidiary of financial ratings agency Weiss Ratings, who called it a "poor move all around."
Cardano founder Charles Hoskinson has responded to criticism of The Cardano Foundation's cooperation with Confirm by claiming that it was required for ADA adoption.
On August 24, the Cardano Foundation announced a cooperation with Confirm, a blockchain analytics service, in which Confirm's analytics will be used to assure compliance with frameworks like the 6th Anti-Money Laundering Directive and the Financial Action Task Force's recommendations.
The announcement stated, "The tools and services supplied by Coinfirm enable every exchange, custodian, and all other third-parties to clearly track the history of ADA held in their wallet."
However, not everyone was pleased with the decision.
Weiss Crypto, a subsidiary of financial ratings business Weiss Ratings, slammed it in a thread on Twitter yesterday, calling it a "poor decision all-around":
“Excessive regulation was the cause of the banking system's demise.
It appears that ADA is boldly expressing its desire to follow in their footsteps with this announcement.”
Cardano's drive toward regulatory compliance seems to irritate Weiss Crypto, which claimed that it is now "closer to becoming a censorship-prone, political, and managed network."
“If you're pursuing this route, there are far better tools for the job — Facebook's Diem, CBDC's, and the networks they'll spring up,” read the post.
Weiss Crypto went on to say that pursuing regulatory compliance by some crypto projects or decentralized networks would only “guarantee your demise.”
The Ethereum co-founder and Cardano creator replied to the thread with a video message, emphasizing that “the point and the objective has always been growing in layers, creating modules, constructing ecosystems” that allows for compliance with local rules.
“While the system's base layer doesn't care if you're from the United States, China, Japan, or anywhere else,” he explained, “you can add identity and metadata, and all kinds of other things, and those other things give you the ability to be in compliance with your business domain, regulated or otherwise.”
“And that is why these collaborations are so vital. They make things clear. They give many business and technical requirements, allowing us to improve the software for everyone everywhere and for Cardano to get further usage in all industries, regulated and unregulated,” Hoskinson said.
In anticipation of the debut of Cardano smart contracts on September 12, the price of ADA has increased by 99 percent in the last 30 days, rising from $1.27 on July 27 to about $2.53 at the time of writing.