Speaking to Naomi Brockwell on YouTube recently, Erik Voorhees, founder of ShapeShift, spoke about the new KYC / AML policy of ShapeShift and the regulation of cryptocurrency space.
ShapeShift, one of the world’s leading cryptocurrency exchange platforms, has recently implemented a policy on money laundering on its platform. The exchange is known in the room to users who do not need an account for the services offered by the platform. The KYC / AML board turned on the space.
The policy was introduced in early September 2018 with the name of ShapeShift member. For the program, users had to open an account and provide basic personal information.
Erik Voorhees said that he has many problems with the implementation of the guidelines on the platform. He said:
“We’ve since, just about a month ago changed that model to require accounts and we have to do KYC on users now, which means know-your-customer, which is a Orwellian construct to basically enlist private companies to do government surveillance for the government, that’s pretty endemic in all financial companies around the world at this point.”
The CEO added that there will be a “constant struggle” with governments and the SEC regarding the regulation of cryptocurrency space. Voorhees explained:
“So crypto generally blurs a lot of legal boundaries and creates a lot of gray area and that gray area is getting figured out; the private companies that are involved don’t understand it all, the government agencies that are involved don’t understand it all and it’s gonna be a tension and struggle, I think for the next decade.”
Voorhees also analyzes the KYC / AML policy implemented by IDEX, one of the largest decentralized exchange platforms in space. The news about the decentralized exchange platform exploded yesterday. The reason for the policy, as stated by the platform, was compliance with sanctions and money laundering regulations.
“I was curious if that was gonna start happening. I didn’t think it would happen so quickly”
The initial Bitcoin is used more widely in the context of a hybrid platform in which the company operates, but the shares are distributed in such a way that the funds are not controlled by them. For such an exchange platform to implement the directive, I have thought it “moves the needle a bit more”.
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