In ShapeShift explained why you need a customer identification

Founder and CEO of the Swiss crypto currency exchange ShapeShift Eric Vorhes (Erik Voorhees) explained why the site has implemented a customer identification and why it is needed. According to the businessman, is a "proactive" step to reduce legal risks.

Recall ShapeShift, which is famous for the fact that not collects personal information about its customers and exchanging one virtual currency for another, in early September announced a membership program for users requiring registration. The company offered customers a new membership program, which "will provide more benefits and better user experience."

The decision of the exchange sparked criticism from some users in the cryptocurrency community. Some have suggested that the new membership model is the result of direct or indirect threats from the regulators. This view may be partially fueled Vorhees own tweet, in which he described a new system of identification of clients as "what we build under pressure."

Later Vorhes said that KYC is not the result of coercive acts. The entrepreneur called the decision "a preemptive step" taken to protect the platform "in the background of an uncertain and changing regulation." "ShapeShift is a legal entity, and we have to abide by laws," — said the head of the crypto currency exchange.

Also, according to Vorhees, the firm has spent "months of legal work and more than $1 billion for legal expenses only." "It is money and time that would be better spent on creating things for protection and customer service," said CEO of the site.

Recall that the policy change ShapeShift at the beginning of the month was one of the reasons for the sharp collapse of bitcoin per day coin lost $900.