As per the recent reports, ShapeShift has made a promising announcement for its users and the entire cryptocurrency community. The firm has announced that it has successfully integrated almost a dozen DEX exchange into its infrastructure. For those who do not know, ShapeShift is known as a noncustodial cryptocurrency exchange.
With the recent announcement, it has managed to attract a large number of cryptocurrency and blockchain users towards the platform. By integrating these many decentralized exchanges, ShapeShift has relieved its users as well as its operations from one of the major regulations.
The ideology that went behind the creation of the cryptocurrency industry was the privacy of the users. The platform was introduced so that the users had full control and power over their personal information. It was completely up to them whether they wanted to share their personal information with third parties or not.
However, with the mainstream adoption increasing in the year 2020, the situation has started changing for the entire crypto-verse. If a cryptocurrency exchange or a firm wants to gain mainstream success, they are required to adhere to the regulatory policies. This is when the Know-Your-Customer (KYC) policy comes into play.
According to the KYC policy, the exchanges or any cryptocurrency firm offering services to users are required to obtain their personal identification information. This completely sets the ideology and path for the cryptocurrency industry off track.
In the current times, the majority of the cryptocurrency exchanges are now adopting the KYC regulations. They are doing this to ensure that they do not end up facing any legal or legislative actions against their firms.
However, ShapeShift has decided to stick to the traditions and the primary ideology of the cryptocurrency industry. With its recent integration of almost a dozen decentralized cryptocurrency exchanges, it has ensured that the company and its users are relieved from the KYC regulations.
In addition to this, ShapeShift’s recent integration will also allow the platform to offer its users superior asset availability, pricing, security, and liquidity.
Before the integration of the decentralized protocols, ShapeShift also had to remain compliant with the KYC policies. This meant that the exchange was required to acquire the personal identification information of its users before they could be on-boarded. If the firm did not follow the required protocols, it was taking the risk of being sued by the regulatory authorities for breaching the regulations.
Following to the recent announcement, the CEO of ShapeShift, Erik Voorhees has clarified that as for now, the regulated cryptocurrency assets will be tradeable through its platform. However, ShapeShift plans to retire all the decentralized assets from its platform following its recent shift to the decentralized protocol.
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