The founder of ShapeShift, Erik Voorhees recently spoke about the inspiration of Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) policies. Throughout a conversation with Naomi Brockwell on Youtube, he has also given his view about guidelines and some important tips to the investors related to the cryptocurrency world.
ShapeShift which was established by him lately executed AML and KYC policies. ShapeShift is one of the world’s major and significant renowned virtual currency exchanges as compared to other exchanges. The firm provides services to its customers without having to make a new individual account.
However, in early September, ShapeShift decided to include a new policy in which users had to create an account to provide basic personal information about themselves. This is in order to be compliant with the current changing legal framework that is expanding all over the world.
Speaking about the concerns of administrative appointment and rule around cryptocurrencies, Voorhees stated that initially, he was very anxious that the U.S. government might have been securer on Bitcoin due to the existential danger the blockchain-based asset modeled to central systems. Though, he thinks that crypto still has a huge way to go. Though in its budding state, Erik feels that it has a very extraordinary chance of fundamentally altering the complete substructure of the monetary world.
He further clarified that he had some issues with the application of this policy. He even stated that this is not an open problem. He commented that this is a political technique to do supremacy shadowing over individuals.
About this issue, he commented:
“We’ve since, just about a month ago changed that model to require accounts and we have to do KYC on users now, which means know-your-customer, which is an Orwellian construct to basically enlist private companies to do government surveillance for the government, that’s pretty endemic in all financial companies around the world at this point.”
At the same time, he explained that there will be a ‘constant struggle’ with governments and the United States Securities and Exchange Commission (SEC). Several countries around the world are starting to implement harder regulations on these issues, and companies that want to continue operating will have to remain compliant with this information.
He explained that cryptocurrencies are in a gray area and that private companies are getting figured out. Some companies do not understand how it works and government agencies neither. This is why there will be some issues with the regulatory framework during the next ten years.
Furthermore, Voorhees talked about KYC and AML policies that were implemented by IDEX. IDEX is one of the most important decentralized exchange platforms in the cryptocurrency world. This is why it has shocked everyone in the space. The decentralized exchangeplatform aims at being compliant with all the money laundering and governmental regulations.
There are different exchanges that are planning to launch decentralized services for cryptocurrency transactions. One of these firms is Binance, the largest virtual currency exchange in terms of trading volume.