Cardano Takes Initiative for FATF & 6AMLD compliance
Cardano’s nonprofit foundation has collaborated with blockchain analytics company Coinfirm to verify that ADA complies with the Financial Action Task Force’s standards. The Cardano Foundation announced on August 24 that it will use Coinfirm’s platform to offer Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT), analytics for Cardano’s in-house cryptocurrency ADA.
As per the foundation, the connectivity will enable the venture to be “in complete compliance” with the Financial Action Task Force, the European Union’s Sixth Anti-Money Laundering Directive (6AMLD), and other Cardano-related laws.
“AML/CFT analytics are critical for a cryptocurrency to gain widespread acceptance in regulated markets,” stated Mel McCann, chief of technical partnerships at the Cardano Foundation. “The Coinfirm platform and features allow any exchange, custodial service provider, and any other third-party to precisely trace the history of ADA stored in their wallets.”
Coinfirm further revealed that it will be capable of offering the very same AML/CFT analytics for Cardano assets, a figure that may increase as the venture gets ready to spread to smart contracts. The announcement comes as blockchain startup dcSpark revealed plans to construct the Milkomeda sidechain, which would link the Cardano blockchain to Ethereum.
The ADA token’s value has risen substantially in the past month, hitting an record high of $2.92 on August 22. According to CoinGecko statistics, the token now has a market value of over $88 billion, putting it above Binance Coin as the third biggest cryptocurrency.