Bitcoin
$ 47,053
Ethereum
$ 1,469.2
Litecoin
$ 173.78
okex ads

ShapeShift Pivots to DEX On-ramp, Ditches KYC Requirements

ShapeShift, a non-custodial cryptocurrency exchange is integrating decentralized exchange (DEX) protocols to boost better user experience, while also eliminating the know-your-customer (KYC) requirement.

ShapeShift Aims to Ensure User Privacy

The cryptocurrency exchange platform made the announcement via a press release on  Wednesday (Jan. 6, 2021). According to ShapeShift, the integration of DEX protocols would provide a safer user experience for its customers.

The announcement also stated that customers could now carry out decentralized trading for Ethereum and ERC-20 tokens on the platform. There were also plans to add Bitcoin before the end of Q1 2021.

ShapeShift initially mandated users to go through KYC requirements before carrying out trading on its platform. However, the change in business model will see the removal of KYC, in addition to users now being able to trade directly using these new DEX protocols, instead of utilizing ShapeShift as a middleman.

Also, the DEX integration and KYC elimination will give users better security, privacy, and transparency. In addition, ShapeShift traders get to enjoy superior pricing and liquidity.

Speaking on the latest development, ShapeShift CEO Erik Voorhees said:

“Centralized exchanges are black boxes: there is no way to audit them from the outside. You have to trust the operators of that exchange and any other party that can access that data, and that trust is often breached. Our goal is to protect people and bring transparency to the financial system. This is open-source finance.”

By pivoting to a DEX model, ShapeShift might be charting a course that could become popular in the future especially as centralized exchanges struggle with the cost of compliance associated with onerous government measures.

Reacting to the news, DeFi influencer Danger Zhan remarked“He’s not that active in DeFi circles But Shapeshift founder Erik Vorhees is ‘based’ — he gets DeFi.”

Indeed, several exchanges and wallet providers are now making forays into the DeFi space given the massive growth currently being seen in the novel market niche.

ShapeShift’s model restructuring comes shortly after the crypto exchange delisted privacy coins. As reported, back in November, the company removed privacy tokens such as Monero, Dash, and Zcash. According to ShapeShift, the delisting happened to “de-risk the company from a regulatory standpoint.”

The platform launched its non-custodial exchange back in July 2019 offering instant cryptocurrency swaps to its users.

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

177-Year-Old Swiss Bank Bordier to Offer Bitcoin and Other Cryptocurrencies Trading Services
February 27, 2021By
The State Of Bitcoin And Alt Coins
February 27, 2021By
South Korea back on track to roll out 20% digital currency tax by 2022: report
February 27, 2021By

Advertisement

Video Posts

In
The State Of Bitcoin And Alt Coins
February 27, 20210
In
Kingdom Entrepreneurship
February 26, 20210

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin47,053 1.47 % 0.56 % 16.03 %
Ethereum1,469.2 1.58 % 1.78 % 25.42 %
Cardano1.400 5.00 % 23.32 % 49.81 %
Binance Coin228.69 1.38 % 0.54 % 32.35 %
Tether1.000 0.21 % 0.24 % 0.24 %
Polkadot34.83 0.37 % 12.51 % 0.55 %
XRP0.4372 1.47 % 0.04 % 23.38 %
Litecoin173.78 1.77 % 0.71 % 27.01 %
Chainlink25.69 0.96 % 0.95 % 26.39 %
Stellar0.4445 1.82 % 16.43 % 13.81 %