ShapeShift CEO, Erik Voorhees announces radical shift to a ‘No KYC’. There is always some room for improvement no matter which field one is working on. The crypto market also has multiple areas through which customer experience can be improved. Non-custodial cryptocurrency exchange ShapeShift recently announced integration of nearly a dozen decentralised exchanges known as DEX protocols. This is aimed at relieving the users and the company from the KYC (Know Your Customer) burdensome procedure and simultaneously offering:
- Competitive pricing
- Asset Availability
- Superior Liquidity
How does this Benefit the Overall System?
Prior to the integration taking place, ShapeShift made it mandatory for users to undergo a KYC process for the firm to remain legally compliant since the exchange was counterparty to user trades. The integration ensures that the exchange is not a party to the trade, neither a custodian nor an intermediary of any kind at any step of the process. This positions them as a software technology firm which does not make it regulated as they are not engaged in a regulated activity.
With the DeFi (Decentralized Finance) ecosystem gaining superiority, this move from ShapeShift is a part of wider trend of exchanges, wallets and various other crypto services which provide access to the DeFi platforms.
Erik Voorhees statement
The CEO of ShapeShift Erik Voorhees has weighed in this aspect against various centralised, custodial services offering on-ramps to DeFi and is known as “CeDeFi”. However, he does not consider this as a threat in the long run. They are incompatible as they have to censor users and put up access controls. For instance, a centralised exchange in Argentina has restrictions due to capital controls while DeFi is not. A DeFi operates exactly as Argentina as anywhere else where it has presence.
Decentralised trading existed a few years ago but was illiquid and not easy to be compelling at a wider scale. However, Voorhees believes that non-custodial services of ShapeShift would be an improved fit for DeFi integrations and may also lead to a foundation for a wider series of varied DeFi products such as a decentralised Bitcoin exchange service.
Therefore, such steps are slightly complex but they can lay a platform to benefit the users in the long run. Such services to users are not a perk but a reality of markets. It will reduce the time for operational tasks and perhaps eliminate entry barriers which deter the entry of various players in the market.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.