Shapeshift to require account/info?

Discussion in 'Bitcoin and Cryptocurrency' started by sinewave3, Oct 2, 2018.

  1. sinewave3

    sinewave3 Member

    Any Shapeshift users out there?

    The main benefit of the site/app was that you could swap between various cryptocurrency (like btc to monero) with nothing but 2 wallet addresses.

    Looks like they will soon require an account:

    ShapeShift will now require you to open an account to trade cryptocurrencies on its exchange

    Right now they say it’s optional, but have to do it to access all features. Soon it will be required fore sure. The founder is a big privacy guy and libertarian. Anyone know why they switched?
  2. Fryguy

    Fryguy Member

    Seems like all crypto is headed towards more regulation. I really like shapeshift, I've used it many times with no issues. Lame that they're going to require ID.
    sinewave3 likes this.
  3. MindlessWork

    MindlessWork Member Supporter

    I suspect this is because of KYC (Know your customer) laws here in the USA and financial institutions of all types have to comply, and even crypto exchanges are now being required to implement KYC if they want to continue doing business with US citizens or to access the US financial systems.
  4. Millard Baker

    Millard Baker Member

    A recent WSJ investigative report published on September 28, 2018 claimed criminal cryptocurrency wallets launcered $8.82 million in BTC via Shapeshift by converting to untraceable Monero. It was the most popular exchange for criminals:

    How Dirty Money Disappears Into the Black Hole of Cryptocurrency

    sinewave3 likes this.
  5. Millard Baker

    Millard Baker Member

    Shapeshift CEO Erik Vorhees strongly rebuked the WSJ investigation in a blog post published on October 1, 2018:

    Shining Light on WSJ’s Attack on ShapeShift and Crypto – ShapeShift
    • ShapeShift has been the subject of claims from the Wall Street Journal related to money laundering
    • We have worked with the journalists for 5 months under false pretenses
    • The WSJ omitted relevant information
    • The WSJ forwent a chance to prevent potential illicit activity
    • ShapeShift is designed to protect users and their privacy and we do not transact in fiat
    • We publish every single transaction conducted on the platform, making all of them traceable
    • The authors do not have a sufficient understanding of blockchains and our platform in particular
    • The claims made are factually incorrect and deceptive
    • ShapeShift has an industry-leading compliance and AML program
    • We’re here to build a better financial system
  6. sinewave3

    sinewave3 Member

    Interesting, could it be a hit piece?

    Full article, no WSJ paywall here:
    How Dirty Money Disappears Into the Black Hole of Cryptocurrency - Unlimited Earn Money
  7. Fryguy

    Fryguy Member

    Just went to use shapeshift app for the first time in a few weeks. I did the base verification with no ID. I can't make any shifts until I verify my identity from the app.