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ShapeShift CEO speaks about the exchange’s implementation of KYC/AML policy

Priya

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ShapeShift CEO speaks about the exchange's implementation of KYC/ AML policy
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Recently, Erik Voorhees, the Founder of ShapeShift spoke about ShapeShift’s new KYC/ AML policy, and the regulation of the cryptocurrency space, during a discussion with Naomi Brockwell on Youtube.

ShapeShift, one of the leading cryptocurrency exchange platforms around the world, recently implemented know-your-customer and anti-money laundering policy on their platform. The exchange was well-known in the space for the users not requiring an account to avail services offered by the platform. This was the main reason the news of a mandatory KYC/AML policy set the space ablaze.

The policy was introduced in early September 2018 named ShapeShift membership. The program required users to open an account and provide basic personal information.

Erik Voorhees said that he has a lot of problems with the implementation of the policy 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 further added that the there is going to be a “constant struggle” with governments and SEC in terms of regulation of the cryptocurrency space. Voorhees stated:

“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 spoke about the KYC/AML policy implemented by IDEX, one of the biggest decentralized exchange platforms in the space. The news regarding the decentralized exchange platform broke-out yesterday. The reason for the policy, as stated by the platform, was to comply with sanctions and money laundering regulation.

He said:

“I was curious if that was gonna start happening. I didn’t think it would happen so quickly”

The early Bitcoin adopter further stated that decentralized exchanges are, in reality, a hybrid platform, wherein a company is operating it but its model parts are distributed in a way that the funds are not held or passed through by them. For such an exchange platform to implement the policy, he believes it “moves the needle a little further”.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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1 Comment

1 Comment

  1. Avatar

    Igor Kiriy

    November 9, 2018 at 1:48 PM

    Without regulation we won’t see adoption, so for such a huge platform it was a matter of time. Any way total anonymous can be dangerous and lead to scams and anarchy

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Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
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The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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