Clients Identification Reduces Legal Risks — Head Of ShapeShift
Erik Voorhees, the general director of the ShapeShift crypto exchange, stated that the decision to identify users is the first step towards reducing legal risks, Coindesk reports.
The founder of the platform noted that the crypto community has already criticized their decision because, according to the website policy, identification was not required earlier for the protection of accounts.
Erik Voorhees, CEO of ShapeShift
There is a version that the rapid switch of the crypto exchange to such new conditions is a consequence of the strict requirements on the part of regulators. The assumption could also be justified by the fact that Voorhees stressed in his tweet about the new user identification system that this is "what we develop under pressure."
At the same time, Voorhees stated that the KYC procedure is not the result of forced actions, but rather a warning step of the company amid the unstable situation related to the regulations in the world market.
Specialists of ShapeShift spent several months on developing of a legal part and more than a million dollars for legal expenses. According to the general director, these funds and time would be more useful for the development of customer protection and support system.
"There is nobody (including us) who desires forced KYC," the founder of the crypto exchange stressed.
As previously reported, ShapeShift users will have to join the membership program.