Prominent Crypto Investor and Exchange Service Provider Talks New KYC and AML Regulations
Erik Voorhees, the founder of ShapeShift, talked about the influence of Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) policies. During a discussion with Naomi Brockwell on Youtube, he has also given his opinion about regulations in the cryptocurrency world.
The platform he founded, ShapeShift, has recently implemented KYC and AML policies. ShapeShift is one of the most important and recognized virtual currency exchanges around the world. The company was able to offer services to users without having to create a personal 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.
However, this is not a straightforward issue. He explained that he had some problems with the implementation of this policy. He commented that this is a Orwellian way to do governance surveillance over people.
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 a 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 exchange platform 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.