Yesterday came the announcement of the partnership between the Algorand Foundation and Chainalysis, a company specializing in blockchain data tracking.
According to the press release, the Algorand Foundation will introduce the new tool provided by Chainalysis, the KYT (Know Your Transaction), allowing to track all transactions on the blockchain including of course the Algorand token, ALGO.
The tool in question was designed to be of service to the various blockchains so as to be able to monitor and evaluate the type of transactions in order to limit suspicious activities that may have been organized by criminals who, often even using exchanges, carry out money laundering.
This Chainalysis tool, launched just a few days ago, has caused a lot of controversies, primarily because this tool will possibly remove the privacy provided by cryptocurrencies such as Zcash (ZEC) and Dash which, thanks to their features, can shield transactions.
In any case, the choice to enter into this partnership was made to be compliant with the various legislations and thus allow the blockchain to reach more people in the world, said Fangfang Chen, COO of Algorand Foundation:
“Algorand is committed to providing an inclusive, transparent, and secure system for its global users. We needed a compliance partner that could not only help us adhere to regulations in Singapore where we are based but also global regulatory best practices. This will enable us to build the best transaction monitoring solution for the Algo token so that we can realize our mission of providing the world’s first open, permissionless, pure proof-of-stake blockchain protocol securely and scalably.”
By adding this tool, Algorand shows that they are concerned about transparency and security, continued Chainalysis CRO, Jason Bonds:
“By putting proper AML transaction monitoring in place, Algorand is demonstrating its commitment to transparency, safety, and compliance. This is the commitment required to build trust and encourage both decentralized financial businesses and traditional finance and to embrace cryptocurrency in Singapore and across the world.”
At this point, it can be said that as soon as this system using dedicated Chainalysis APIs is introduced, all those who will use this blockchain will be tracked inexorably and so no one will be safe.
Although it is reiterated that the tracking is only related to the ALGO token, unfortunately this is also reflected on the tokens of this blockchain, called ASA, since to create them it is necessary to use ALGO tokens.
Moreover, it seems that this move has been made to facilitate the spread of the token rather than thinking about the user’s privacy: at this point, it would be almost useless to create a token that can protect privacy since ALGO will be tracked.
It is important to remember that privacy does not mean committing crimes or money laundering, just as it does not mean that whoever wants privacy commits illegal activities.
Although this news may be seen in a negative way by some members of the community, the Algorand (ALGO) price continues to grow relentlessly and is traded at over $0.23.
During its historical low, which occurred precisely during the famous crypto crash in mid-March, it had reached $0.10.