Is KYC Compulsory To HODL ADA, A ‘Must-Read’ For Cardano Holders!

There’s a lot of buzz among ADA investors and crypto enthusiasts, following a news update from Coin Bureau’s weekly video. FUD (Fear Uncertainty Doubt) got underway in the crypto space. Concerns regarding the anonymity of users were the focal point among traders. The platform circulated the need for AML/KYC compliance in order to hold ADA. 

It is a well-known fact that Cardano is a blockchain platform that is open source and decentralized. Consequently, it is clear that there is no regime that is governing the platform. The FUD might probably be a result of mere misinterpretation. 

It all started when the weekly round of Coin Bureau covered the partnership of Cardano with the blockchain analytics platform Coinfirm. The partnership aims to ensure ADA is fully adhering to the guidelines set by FATF and 6AMLD. And hence, Coin Bureau citing the rules and regulations, clearly stated that every individual and institution using cryptocurrencies needs to complete the KYC papers. 

Moreover, the Coin Bureau went on to state that, as the final recommendations are due for October, a worst-case scenario could occur for the ADA holders. 

“Cardano holders could find themselves in a position where they’re locked out of their wallets until they complete KYC and this seems to be the FATF’s ultimate endgame for all cryptocurrencies,” it stated.

However, when the platform received immense heat from the crypto space, it went on to clear the speculations. The clarifications went on saying that there is no intention to create FUD but only the concerns. 

Charles Honkisnon Squashes The FUD!

The FUD flattens as Cardano’s founder Charles Hoskinson rolls out the clarifications, squashing the assumptions through his video. He said that every single authentic cryptocurrency has entities that interact with are regulated by some jurisdiction. And hence the Cardano updations are to be in compliance with the law. This in no way means that KYC (Know Your Client) and AML (Anti Money Laundering) will be a necessity for the use of ADA.

From Mr Hoskinson’s video, that effort made within the Cardano foundation and other actors in the ecosystem is clearly visible. To transit the existing tools, techniques, and software capabilities, so that the exchange platforms can perform KYC and AML.

On the whole, despite the KYC is to reduce the unnatural practices within the ecosystem, yet KYC papers may not be mandatory. However, KYC and AML do not require the base protocol, De-fi, decentralized wallets, etc to use ADA protocol. Nevertheless, the FUD did not deter ADA’s prices to a significant level. The digital coin has seen gains of over 3.88% for the past 24 hours at the time of writing.