ShapeShift's CEO - Requiring Formally Verified Accounts Was Intense.

ShapeShift's CEO - Requiring Formally Verified Accounts Was Intense.

2018-09-24 | Big Bob

ShapeShift's CEO - Requiring Formally Verified Accounts Was Intense.

Digital currency exchange [ShapeShift’s] contentious decision to obtain user identities wasn't forced upon it however significantly a "proactive" step to scale back legal risks, as per the CEO and founder of the company ‘Erik Voorhees’.

Explaining more Erik offered some sole principles behind a move that prompted criticism from some within the cryptocurrency community who'd seen the site's previous policy of not requiring formally Verified accounts as the way to shield privacy.

Some had speculated that ShapeShift's new, soon-to-be necessary "membership" model – proclaimed in early Sep. – was the results of direct or indirect threats from regulators. (This speculation could are fired partially by Erik’s own official tweet during which he detailed the new client ID system as "something we're building underneath force.")

But Erik, a vocal advocate of privacy rights and a critic of know-your-customer [KYC] laws, told that "KYC wasn't introduced as a results of any regulatory control action, however rather as a proactive step we tend to took to de-risk the corporate amid unsure and dynamic international laws."

Adding further he mentioned:

"It was a strategic call as we tend to believe the danger of not doing so had gotten too great. It had been not created gently."

Erik mentioned that the firm had spent "months of legal work and over 1,000,000 dollars of legal expenses on this subject alone. That's money and time that would've been effectively spent building things to shield and serve customers."

While his comments believe that restrictive concerns were a driving factor about the choice to form account identities necessity, Erik framed it as a later addition to a program originally developed as an extra feature.

Explaining this he said:

"KYC was therefore stuck on to the Membership platform, and while extra membership and account-based option features are actually desired by several of our customers, there's no one (including us) who wishes for the forced KYC.”

'We stay committed'

In a Twitter exchange that occurred when Erik posted officially that a number of weeks past detailing the "tokenized" membership model as the way to produce special perks for loyal users, critics mentioned he ought to have simply shut the corporate down instead of compromising his pro-privacy principles.

But in his statement adding further, the CEO of ShapeShift reiterated that he created the modification with the utmost reluctance as a steadfast opponent of govt. surveillance in financial affairs.

"We stay committed to the struggle for monetary privacy and sovereignty for all humans, and would still plan action regarding about how further that cause," he said.

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