Cryptocurrency exchange ShapeShift has announced it will no longer require its clients to pass Know Your Customer (KYC) identity verification as the platform integrates decentralized protocols for users to trade crypto.
In an official announcement, ShapeShift's Founder and CEO, Erik Voorhees, says that KYC is not only "ineffective," but also "unethical and dangerous."
"Because we are ending all regulated activity, we will no longer require KYC. And for the protection and dignity of our customers, ShapeShift will integrate decentralized protocols wherever possible going forward," Voorhees added.
With reorganization, ShapeShift is no longer an exchange or intermediary. Voorhees says the service is just a "software interface" that allows simple interaction with decentralized finance (DeFi) technology. Initially, ShapeShift's decentralized protocols will only support ERC20 assets. However, in the upcoming future the service plans to add support for non-wrapped bitcoin (EXANTE: Bitcoin) and "several other leading chains" in Q1, 2021.
iHodl earlier reported that the Switzerland-based cryptocurrency exchange acquired Portis, an Israeli digital wallet that also has its own SDK for developers of crypto applications to easily integrate wallet functionality into their product.
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