Best Shapeshift Alternative?
- Instant cryptocurrency exchange Shapeshift, now officially requires KYC identity verification
- Shapeshift has admitted that KYC ID verification is hurting profits and has been forced to let go, 37 full-time employees
- The instant exchange has revealed that it assisted with several law enforcement investigations in 2018
Users and API Partners are Flocking to Shapeshift Alternatives
Up until September 2018, Shapeshift.io was widely considered the best cryptocurrency exchange for instant digital asset exchanges. However, individual users and wallet apps which use Shapeshift, are now staging a departure from the platform.
Shapeshift KYC ID Verification has Seen Trust Disintegrate
According to Shapeshift CEO Erik Voorhees, the popular instant exchange recently implemented KYC ID verification, in light of “perceived regulatory risks.” However, since implementation, trust in what was once the best cryptocurrency exchange for instant coin to coin exchanges has plummeted.
Why is KYC ID Verification an Issue?
As early as April 2018, Reddit Shapeshift users began complaining that Shapeshift was freezing privacy coins like Monero mid-exchange. In most cases, users were informed that to release their funds, Shapeshift would require a copy of an official ID document. This despite no users being notified in advance that they would need to confirm their identity.
Later in September, Shapeshift admitted that eventually all users would be required to confirm their identity. Moreover, this has caused upset for several reasons.
- Law enforcement requests for Shapeshift user ID details increased 175% in 2018
- KYC ID verification exposes the real identities of privacy coin users
- September through to November 2018, saw a spike in new law enforcement information requests from the US, UK, and Europe, after KYC ID verification was officially implemented
Because of new user ID requirements, Shapshift.io is no longer the best place to buy Bitcoin or exchange digital currency. At least not for users who value their privacy. However, it is not just individual cryptocurrency users who are shunning Shapeshift. Instead, several wallet developers and cryptocurrency payment processors like BTCPay, are also severing ties with the platform.
Can Fox Exchange Become the Next Shapeshift?
In a recent blog post, Shapeshift CEO Erik Voorhees stated that:
“Our imposition of KYC’d accounts, caused many of our most valuable API partners to leave us for competitors who have not perceived regulatory risks in the same way.”
Safeguard Your Privacy Today
We at fox.exchange value your rights for privacy and we don’t require signup or verification when using Fox Exchange!