The nonprofit entity creating Cardano has reportedly teamed up with blockchain analytics provider Coinfirm, to achieve the required compliance level for ADA with the Financial Action Task Force’s guidelines.

Specifically, the Cardano Foundation reportedly disclosed details of its initiative to utilize Coinfirm’s offerings that support Anti-Money Laundering (AML), as well as Combating the Financing of Terrorism (CFT) analytics, for Cardano’s native virtual coin ADA.

Per the foundation, the integration will reportedly make it possible for the initiative to achieve  “full compliance” with the guidelines established by the Financial Action Task Force, the European Union’s Sixth Anti-Money Laundering Directive (6AMLD), and different regulations to which Cardano is subjected. 

“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 clearly track the history of ada held in their wallets.” Cardano Foundation’s head of technical integrations Mel McCann reportedly remarked regarding the development. 

Coinfirm additionally revealed that it has the ability to similar AML/CFT analytics for Cardano-based minted assets, a variety of which has the potential to develop, as the initiative is gearing towards an expansion into smart contracts.

News circling the integration reportedly surfaced as blockchain entity dcSpark publicly disclosed its intention of designing its Milkomeda sidechain, which aims to establish a connection between the Cardano blockchain with Ethereum.