Instant cryptocurrency exchange ShapeShift.io has become the latest cryptocurrency entity to succumb to user data collection as part of a major overhaul to its services.
CEO VOORHEES: IT 'SUCKS'
In a blog post on September 4, CEO Erik Voorhees stated that all ShapeShift users would ultimately face "mandatory" know-your-customer (KYC) requirements in order to exchange cryptocurrency.
ShapeShift introduced the changes in the form of a 'membership' scheme, which Voorhees says addresses user requests for more information about their activity while giving them "benefits" for loyalty.
"To some who have followed our history, it may seem a curious development; ShapeShift is known as 'the exchange without accounts,' a model we pioneered in order to reduce friction and protect customers," he admitted.
Currently, anyone can use the service to swap between an extensive list of cryptocurrencies without an account or signing up for a formal exchange platform. Exchanging had been anonymous inasmuch as users did not need to provide any further KYC information.
Continuing, Voorhees claimed the plan to collect data "sucked."
"We would prefer if the collection of personal information was not a mandatory element," he wrote, pledging ShapeShift would continue to promote privacy. "We remain committed to that cause and it is best served if we are smart about our approach.
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