CEO and founder of the exchange platform ShapeShift Eric Vorhes said that the decision on introduction of procedure of user identification ShapeShift allowed to pre-empt possible legal risks of the company. It is reported by CoinDesk.
“KYC is not a result of any enforcement action. This is a proactive step that we have taken in order to protect the company against an uncertain and changing regulation. ShapeShift is a legal entity, and we have to abide by the laws”, — he said.
Under the assumptions of the users, the collection of personal data from the ShapeShift was a necessary step on the background of the yoke regulators. The suspicion was later reinforced Vorhees tweet in which he stressed that “the implementation of KYC is under pressure.”
Tone — KYC and FOX have nothing to do with one another, other than both are aspect of our platform that are rolling out in a similar timeframe. FOX is something we’re building because it’s useful and cool, and KYC is something we’re building under duress.
— Erik Voorhees (@ErikVoorhees) 5 Sep 2018
But now Works determined KYC as an “additional function”.
“This decision has been severe. ShapeShift doesn’t want to force anyone to KYC”, — he said.
Earlier, cryptologist harshly criticized ShapeShift because of the decision about the launch of membership program and the associated collection of personal data of users.