ShapeShift: exchange boss admits it had no choice but to introduce registration

ShapeShift boss Erik Voorhees seems as keen on user registration as the exchange’s customers…

The boss of cryptocurrency exchange ShapeShift has opened up a little more about his controversial decision to add a registration requirement to the service, that had previously heavily sold itself off the back of privacy, and not needing registration at all.

Erik Voorhees, as you can see from our original story that you can find here, gave the impression that he wasn’t happy with the move himself, and that he’d been pushed into doing it. Now, in a new chat with CoinDesk, he admitted that KYC [know your customer] “was not added as a result of any enforcement action, but rather as a proactive step we took to de-risk the company amid uncertain and challenging global regulations”.

Furthermore, “it was a strategic decision as we believe the risk of not doing so had gotten too great. It was not made lightly”.

ShapeShift it seems had been doing its utmost to resist introducing registration, fully aware of how it went against its original pronouncements. There’s no way it wouldn’t have seen the backlash coming, either, given how much of a selling point its privacy and no-registration approach clearly was. The company itself had sold itself heavily off the back of it.

“There is nobody (including us) who desires forced KYC”, Voorhees further admitted to CoinDesk.

There’s still no official timescale as to when the registration features will be switched on and make compulsory, but that day is clearly coming fast. Furthermore, there’s a sense that official regulation may not be too far behind, either.

You can find the ShapeShift exchange’s website here.