Cardano: Hoskinson’s message for compliance ‘FUDsters’
After days of criticism associated with Cardano’s new compliance decisions, Founder Charles Hoskinson finally shot back at FUDsters via a recent video.
In fact, in the said video, the exec went as far as explaining how new policies would not affect the Cardano protocol.
Here, it’s worth pointing out that Hoskinson’s video came soon after Coin Bureau and Weiss Crypto took issue with Cardano’s partnership with Coinfirm - an AML analytics provider. According to the latter, for instance, the partnership is a “bad move all around” and “disappointing.”
The exec, however, defended compliance tools for the sake of Cardano’s growth. He claimed regulated entities need to ensure compliance in their own domain.
Even so, Hoskinson was quick to stress that these policies will not affect the Cardano protocol, the full-node Daedalus wallet, or Cardano’s base layer.
“It’s open source software that’s complete decentralized. It’s sitting in a GitHub repo at any given time. Anyone can fork that and run it with their own brand, logo, and reputation on top of it. It’s not proprietary.”
When asked how KYC/AML would even be possible in such cases, Hoskinson told viewers to “think it fu*king through.” According to the Founder of Cardano, it is doing nothing different from Bitcoin and Ethereum.
Hoskinson also predicted that stronger regulations are coming to the DeFi space. The guidance published by the Financial Action Task Force [FATF] in March is one such example. The document highlighted the need for KYC policies among “virtual asset service providers.”
Nevertheless, Hoskinson insisted that not all files on a system have to be in compliance with a particular regime.
Curiously, Coinfirm has also claimed that Binance and XRP use its solutions. Meanwhile, blockchain analytics company Crystal Blockchain supports Ethereum Classic, over 1500 ERC-20 tokens, and Bitcoin SV.
It’s no secret that the third-largest cryptocurrency by market cap aims to turn one billion people into Cardano users over the next five years.
However, before that, certain conditions need to be met. According to Hoskinson,
“If our goal is to get Fortune 500 companies, government actors and billions of people to use the product, then we have to accept that they’re all going to be using Cardano differently.”
With the scheduled call between Cardano’s Jeremy Firster and Weiss Crypto falling through on 9 September, it’s unlikely critics’ concerns will be addressed anytime soon.