Cardano Foundation has selected blockchain analytics provider Coinfirm to enhance security by deploying advanced AML/CFT analytics on its blockchain ecosystem.
The AML/CFT analytics provided by Coinfirm will ensure Cardano’s compliance with the FATF’s (Financial Action Task Force) guidelines, 6AMLD, and other supranational and national regulations.
Mel McCann, Head of Technical Integrations at Cardano Foundation, commented: “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. We are proud to work with Coinfirm due to their high quality results and product offerings as the first analytics solution live on the Cardano blockchain, the partnership with Coinfirm represents our continued dedication to supporting the adoption of the Cardano blockchain.”
Cardano, with a market cap of over $80 billion, has been gaining fast traction with regulated financial institutions, enterprises, governments, startups, and users.
It has reportedly reached a user base of more than 1.3 million based on the number of unique wallets, which makes Cardano the third-largest cryptocurrency ecosystem in the world.
Coinfirm will be able to provide AML/CFT analytics to all assets minted on the Cardano blockchain, which naturally includes the native token, ADA.
The need for stronger compliance means comes as criminals have turned to crypto as the ecosystem’s skyrocketting market capitalization together with its overall immaturity makes it a perfect prey for deception and theft.
Forensic analysis tools enable victims to work with law enforcement agencies and third party Virtual Asset Service Providers (VASPs) to report stolen assets.
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.”
Protocols looking to operate in regulated markets are required to integrate reliable AML compliance solutions.
Coinfirm was launched in 2016 and has specialized in solutions for coins and protocols. It automates and streamlines anti-money laundering and analytics for cryptocurrencies.
Its AML solution reports more than 330 risk flags, including financial crime, counterparty identity, real-time cryptocurrency monitoring, tracking and investigation of funds, or customization of risk and analytics data.
The regtech firm supports over 1,500 crypto assets and boasts top names within the industry as clients, including crypto exchange Binance and Ripple’s protocol XRP.