ShapeShift’s Latest Membership Initiative Follows Regulator’s Threat, Says Lawyer

There was uproar in the cryptocurrency space yesterday when it was announced that the Bitcoin exchange ShapeShift is bringing in a new membership initiative, saying users are going to present a detailed personal data to have access to the exchange service.

In a Tweet by ShapeShift, it was maintained that the company now has a new membership terms and conditions.

“ShapeShift has big news for our users! We are now offering a new membership program, which will provide users with more benefits & better user experience.”

Meanwhile, the registration is still option, but in the nearest future, users have to fill in a comprehensive details about themselves.

According to the company, the new idea is a loyalty program that stands to permit users the advantage to have more benefits such as reduced exchange rates, rewards for FOX token transactions, among others.

In a message by ShapeShift’s CEO Erik Voorhees, it was admitted that the compulsory registration is a hard but important steps towards bringing sanity to the system in accordance to the regulatory procedures:

“Yes, that last detail sucks. We would prefer if the collection of personal information were not a mandatory element. We still firmly believe that individuals, regardless of their race, religion, or nationality, deserve the right to financial privacy, just as they deserve the right to privacy in their thoughts, in their relationships, and in their communications. Such privacy is a foundational element of civil and just society and should be defended by all good people. We remain committed to that cause, and it is best served if we are smart about our approach.”

Lawyer Responds.

A Washington D.C.-based lawyer Jake Chervinsky who responded to this initiative maintained that decision is birthed by regulators, pointing that ShapeShifts’s steps to seek more personal information about users is in response to pressures mounted by financial authorities, adding that, “in short, this is how regulators silently invade crypto.”

He said that because Voorhees is a true bitcoiner who passionately talk about financial privacy and separating money from state all constituted to Regulatory decision. He however pointed that enforcement agencies depend so much on financial surveillance, pointing that the idea of privacy cryptocurrency exchanges and transactions is a “nightmare for regulators & investigators.”

He said in his Tweet:

“Our financial system is expressly designed to give the government maximum insight into our financial behavior. To that end, most financial institutions have to perform customer due diligence and share information with regulators. We call this “know your customer” (KYC).”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today