ShapeShift wants to avoid KYC through decentralization
ShapeShift moves away from centralization
All transactions will now be conducted through a decentralized channel
ShapeShift will stop asking for customer verification
International consortium of news organizations developing transparency standards.
ShapeShift cryptocurrency exchange announces closure as it existed for over six years
Crypto exchange ShapeShift has begun reorganizing its working model with a focus on decentralized technologies. The exchange announced this on its official website.
Join our telegram channel to keep abreast of the main trends in the crypto market.
ShapeShift users will now be able to trade directly through decentralized protocols instead of a centralized intermediary in the form of ShapeShift. ShapeShift customers also no longer need to verify their identity as part of the Know Your Customer (KYC) requirements..
ShapeShift founder and CEO Eric Voorhees said that over the past two years, forcing users to verify has become not only “ineffective”, but “unethical and dangerous practice.”.
“In the US alone, about 20 million people suffer from identity theft every year …” added Voorhees.
Initially, the decentralized version of ShapeShift will only support tokens based on the Ethereum blockchain (ERC20). The company hopes to add support for Bitcoin (BTC) and other assets in the first quarter of 2021.
“With a fundamental change in our business, ShapeShift is no longer an exchange or intermediary of any kind,” Voorhees said..
However, in order to trade with fiat, ShapeShift users will still have to go through verification..
Out of sight
Now, according to the head of ShapeShift, the service acts as a purely software interface. Note that a similar business model has already proven itself in the example of Uniswap.
The decision to abandon the centralized business comes against the background of proposals from US regulators to tighten regulation of cryptocurrency exchanges. As a reminder, in mid-December 2020, the Financial Crimes Enforcement Network (FinCEN) proposed to strengthen the surveillance of cryptocurrency wallets.
Learn how to trade in the cryptocurrency market with BeInCrypto partner, StormGain cryptocurrency exchange
In particular, it is proposed to apply advanced methods of the KYC policy in case of withdrawal of funds over $ 3000. Transactions over $ 10,000 must be reported to FinCEN.
In the cryptocurrency community, the FinCEN proposal was received extremely negatively. For example, Square CEO Jack Dorsey has already said the proposed regulations will harm the economic empowerment of individuals..
What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
DeFi community wants to create tokens for GameStop shares CONTENTS Crypto community thinks about saving GameStop shares Potential synthetic token…
SkyBridge Capital investment fund invested $ 25 million in bitcoin CONTENTS One of the largest investment funds joined the bitcoin rally Initial investment amount…
Israeli startup project in the field of DeFi is sold to Eric Voorhees CONTENTS The decentralized finance market is actively developing and attracting new…
Former employee stole $ 900,000 worth of bitcoins from ShapeShift CONTENTS ShapeShift claims that her former employee stole $ 900,000 in ShapeShift bitcoins…
The Central Bank wants to use the digital ruble for international settlements CONTENTS The Central Bank of the Russian Federation does not exclude the possibility of international settlements with digital…