Cardano Foundation Ramps Up Drive for Regulatory Compliance With Coinfirm Partnership
The Cardano ecosystem is undergoing significant developments to onboard more customers and grow in the coming months.
In its latest push, the Cardano Foundation is expanding the blockchain’s compliance measures. And it is taking a partner along.
AML/CTF Measures Instituted For ADA
Earlier this week, the Cardano Foundation announced a partnership with blockchain analytics firm Coinfirm to improve compliance within the Financial Action Task Force’s (FATF) guidelines.
In the announcement, the company explained that it would use Coinfirm’s infrastructure to improve the Anti-Money Laundering (AML) and Counter-Terrorist Financing (TF) measures of its ADA token.
The Cardano Foundation has touted the collaboration, explaining that it will make ADA fully compliant with the Sixth Anti-Money Laundering Directing (6AMLD) from the European Union. Mel McCann, the company’s head of technical integrations, said in part:
“AML/CFT analytics is essential for a cryptocurrency to receive mass adoption within regulated markets. The tools and services provided by Coinfirm enable every exchange, custodian, and all other third parties to track the history of ADA held in their wallets.”
Cardano’s Forthcoming Expansions
The integration couldn’t come at a better time as Cardano is looking to scale up significantly. Last month, Input-Output Hong Kong (IOHK), the blockchain’s development team, announced that it had gone a step further in its mission to launch smart contracts. The project, dubbed “Alonzo,” has now transitioned from blue to white, signaling the crossing of yet another hurdle.
Alonzo Blue was the previous iteration of smart contract compatibility on the Cardano blockchain. However, it only offered this functionality to a limited number of users. With last month’s upgrade, about 500 network validators, developers, and stake pool operators will be able to test the features from now on.
Alonzo White will run for two to four weeks, then move on to the final deployment testnet phase- Alonzo Purple. All in all, it is expected that the smart contract functionality will come fully to the Cardano blockchain on September 12.
In a recent YouTube video, Cardano founder Charles Hoskinson explained that everything is still on track for Alonzo’s full launch. Hoskinson added that over $10 million in non-fungible tokens (NFTs) had been sold through the Cardano network, along with thousands of digital assets.
Alonzo’s full mainnet launch will finally allow developers to launch decentralized applications (dApps), NFTs, and several other tokens on the Cardano blockchain. The developers will be expecting a significant upsurge in ADA use, so Coinfirm’s partnership will undoubtedly come in handy to keep the asset fully compliant.
The integration will be encompassing, with Coinfirm claiming that it will offer the same AML and CTF to all assets minted on the Cardano blockchain when the expansion starts rolling in. Cardano’s developers appear to be looking at the bigger picture, with regulatory oversight of crypto becoming more of an issue.