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Shapeshift is being forced to implement KYC/AML policies, says Erik Voorhees

Priya

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Shapeshift is being forced to implement KYC/AML policies, says Erik Voorhees
Source: Unsplash

Erik Voorhees, the CEO of Shapeshift, spoke about whether or not privacy and KYC/AML rules could co-exist, in an interview on WhatBitcoinDid. He also spoke about decentralized exchanges being a solution for participating in the cryptocurrency space, without giving away personal details.

ShapeShift, one of the leading cryptocurrency exchanges across the globe, introduced mandatory Know-Your-Customer and Anti-Money Laundering policies last year, resulting in the exchange facing the community’s backlash. Further, the main reason for the majority of the community speaking up against this move was because users could avail the platform’s services without having an account, which was bought to an end by the policy.

On whether or not privacy and KYC/AML could co-exist, Voorhees said,

“No, I mean this is why it was such a devastating thing for us to do because I personally and as a company respect the right of individuals to have financial privacy forcing KYC on people violates that right? So, I don’t support that the fact that we are doing, it isn’t because we support that, it’s because we are essentially being forced to do that”

This was followed by Voorhees stating that several people failed to understand this, thinking that the exchange changed their principles because it changed the policy.



“We didn’t it is wrong and I believe it is morally wrong to require people to surrender their personal information I believed that years ago, five years ago and I believe it today”

Furthermore, he was asked whether a decentralized exchange was the only way to resist surveillance economics as suggested by Andreas Antonopoulos, the author of Mastering Bitcoin. To this, Voorhees stated that “any path a company goes down is not decentralized by definition.”

He further stated that there were several decentralized exchanges that have been imposing KYC, adding that “it is not as clean-cut, that a decentralized exchange can avoid these issues and a centralized exchange cannot.” Voorhees said,

“There’s a lot of nuance to it and depends a lot on the structure of the entity, on the risk tolerance of the individuals involved on the jurisdictions that are being considered it’s not an easy question”





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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.

Bitcoin

Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra

Febin Jose

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Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra
Source: Pixabay

Bitcoin [BTC], the world’s largest cryptocurrency, saw a significant surge earlier this month, helping the coin break strong resistance at $5,000 and $5,200. Following the great fall of the king coin in early 2018, the Bitcoin ecosystem was struggling with scalability and technological issues, eventually leading to the hard fork.

Bitcoin.org’s Cobra, who is also the co-owner of Bitcointalk.org, has always maintained that Bitcoin was the cryptocurrency to look out for through his various Twitter bouts with prominent personalities in the cryptoverse. Due to his strong, unbridled support for Bitcoin, he has often trashed altcoins for their low market dominance.

In a new Twitter thread, Cobra spoke about the “biggest threat” to the Bitcoin ecosystem. Even though many crypto-enthusiasts believe that governments and technological issues were the biggest threats to the king coin, Cobra had a completely different opinion.

According to the Bitcoin maximalist, users have the potential to signal Bitcoin’s doom. His tweet read,

Source: Twitter

Source: Twitter

Though most Bitcoin supporters usually support his opinions, this tweet was met with a lot of resistance. Twitterati swarmed the thread in an attempt to prove him wrong. A user named @MrHodl alleged that this could not be true as Bitcoin had “no community.” He added that this, in turn, prevented toxicity in the ecosystem.

Cobra replied to the tweet stating,



“I think there is a community, it’s just not fully representative of everyone with a stake in Bitcoin. Most holders are quiet and not too familiar with what’s going on. There’s people with 1000+ BTC and they don’t engage at all with discussion platforms, just lurk.”

Some Twitter users took it as an attack on Bitcoin investors and opposed Cobra’s stance. A user @CarstenBKK commented,

“Maybe I am lost in translation. What do you wanna tell us? That you are part of Bitcoin network of people owning/using it, but you are just disgusted by the idea, that the network is called community in the sense of direct human collaboration and affection to the groups ideals?”

Previously, Cobra had accused Twitter’s Jack Dorsey and Square Crypto of pandering to Bitcoin users, while also suggesting that the crypto project was merely a way to bring in more users for Dorsey’s CashApp. His tweet read,

“Gotta respect how hard @sqcrypto is pandering to Bitcoiners. Very clever how @Jack has embedded himself in the community; in return the community promotes @CashApp, which gives that service a small but dedicated and activist group of early users.”





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