ShapeShift, a popular platform for the immediate exchange of bitcoin and other cryptocurrencies, announced the launch of a membership program for users, which would involve personal data collection.
The industry veteran ShapeShift has always been known for its business model, which does not require user registration. However, in the near future changes will be applied — registration, still voluntary today, will soon become mandatory.
The initiative is positioned as a loyalty program and will offer users various advantages. Nonetheless, in return for this traders will have to provide some personal information about themselves.
The list of advantages of the program includes more favorable terms for exchange, rewarding transactions with a FOX token (depending on the volume of transactions), and increased transaction limits.
ShapeShift CEO Erik Voorhees understands that mandatory registration is an extremely unpleasant detail, but the company had to take this step because of the unclear position of regulators regarding cryptocurrency exchanges.
“We still firmly believe that individuals, regardless of their race, religion, or nationality, deserve the right to financial privacy, just as they deserve the right to privacy in their thoughts, in their relationships, and in their communications. Such privacy is a foundational element of a civil and just society, and should be defended by all good people. We remain committed to that cause and it is best served if we are smart about our approach,” stressed Eric Voorhees in the company blog.
The Head of ShapeShift added that the introduction of registration was also a response to the request of users who wanted various functions related to accounts. In fact, membership is an advanced loyalty program that will give users better conditions and improved experience of using the site.
He also stated that ShapeShift will continue to be a non-custodial platform, that will not store users' funds.
WHY IS IT IMPORTANT?
- ShapeShift service was working for a long time without users registration. Now it is voluntary, but in the near future it will become mandatory. The company's CEO assured that the site will not begin storing funds of its users. How the platform will protect personal information he did not specify.
- The platform will present five levels of membership. The first one is open to everyone, the rest will provide an expanded list of benefits, and users will be able to access them depending on the volume of FOX tokens there are holding. The first 100 thousand participants of the bonus program will receive 100 platform tokens.