ShapeShift Is Going Full DeFi to Lose KYC Rules

ShapeShift Is Going Full DeFi to Lose KYC Rules


ShapeShift is swapping business structures again, this time by getting rid of its entire trading desk. 

The Colorado-based non-custodial exchange is now routing orders through decentralized finance (DeFi) applications in a bid to get rid of know-your-customer (KYC) regulations that gutted the cryptocurrency trading platform back in 2018.

The firm will gradually phase out its own centralized trading activity (and KYC policy) in favor of a decentralized alternative as it becomes “100% DEX-based for customers,” ShapeShift founder and CEO Erik Voorhees told CoinDesk in an email.

“ShapeShift’s original model was designed to protect users, providing instant liquidity without requiring them to trust a custodian,” Voorhees said. “We had to be the counterparty – the market maker – to provide that service at scale. The decentralized protocols are now providing a superior service, so we’re embracing this evolution and helping our customers easily connect with them.”

Founded in 2014, ShapeShift added a KYC requirement to

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