ShapeShift CEO explained the need to identify customers

[Paha87]

A controversial decision Shapeshift crypto currency exchange to demand identification of users meant "a pre-emptive move to reduce legal risks," according to CEO and founder Eric Voorhis platform.

                         


In comments made over the weekend, Voorhees offered some still-unsolved justification for recent actions that sparked criticism from members of the crypto community. Some users stated that the previous site policy did not require the identification of accounts as a way to protect privacy.

Also, some members of the crypto community suggested that the new model of" mandatory membership " ShapeShift was the result of direct or indirect threats from regulators. (This speculation may have been fueled in part by Voorhees ' own tweet, in which He described the new customer ID system as "what we create under pressure.")

But Voorhees, as a libertarian proponent of privacy rights and critic of customer name identification (KYC) rules, said that "KYC was not added as a result of any enforcement action, but rather as a proactive step we took to insure the company against the backdrop of uncertainty and changing rules," adding:

It was a strategic decision, because we believe that the risk of not doing so has become too great, and it has not been easy.

Voorhees said the company incurred "over a million dollars in legal expenses just on this topic. That money and time we spent better on building [systems] to protect and serve customers."

While his comments confirm that regulatory considerations were the driving force behind the decision to require proof of customer identity, Voorhees framed the event as a later addition to the program originally designed as an optional feature.

However, in a final remark, Voorhees acknowledged: "ultimately, ShapeShift is a corporate entity and we have to comply with laws around the world."

Link to information resource - https://altstake.io/news/gendirektorshapeshift-razyyasnilneobhodimosty-identifikacii-klientov