ShapeShift, a global digital assets exchange headquartered in Switzerland has announced the launch of its membership program that would soon make it mandatory for users to submit their basic personal information, as stated in the firm’s news release on September 4, 2018.
A Total Paradigm Shift
According to a ShapeShift blog post, the cryptocurrency trading platform is moving away from its “no user details required” model to an entirely new system that requires users to submit their personal details.
The ShapeShift Membership is crafted like a loyalty program that offers registered users benefits including higher trading limits, better pricing and more, according to users’ membership levels.
The CEO of ShapeShift, Erik Voorhees has made it clear that the change in the firm’s mode of operation stems from the feedback it has been receiving from users over the past year as well as factors like tokenization and becoming more regulatory compliant.
“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,” ShapeShift stated.
“This change is the convergence of three themes we’ve been exploring and considering intensely over the past year.”
At a time when the activities of bad actors have led to a significant increase in regulatory oversight of the global cryptospace, with authorities making KYC/AML procedures compulsory for cryptocurrency trading platforms and exchanges, the ShapeShift change seems the right thing to do.
🔐 In the interest of transparency, here’s how we’re handling your data with the Membership Platform: A note from security expert & ShapeShift CISO, @mperklin: https://t.co/kLpzZTwGk6 pic.twitter.com/1NsPtFLUCH
— ShapeShift.io (@ShapeShift_io) September 5, 2018
What Registered Crypto Traders Stand to Gain
ShapeShift will be rewarding members with its FOX tokens, which are standard Ethereum-based tokens. The exchange claims that a total of 1,000,001,337 FOX tokens are already in existence and will be released shortly.
There are five membership levels on the exchange. Level 1 is free and open to everyone, while members of levels 2 and above will enjoy discounted exchange rates, volume-based rewards in FOX tokens and higher transaction limits.
To become a member, users first need to log onto the ShapeShift site or use the API to register their necessary personal information. The company has stated that the first 100K members will be rewarded with 100 FOX tokens each.
In addition to being the native altcoin of ShapeShift, the exchange has also said that “possession of specific amount” of FOX tokens would help users move to higher levels on the platform.
Founded in 2013 by famous cryptocurrency enthusiast, Erik Voorhees, ShapeShift cryptocurrency exchange supports bitcoin and other altcoins.
As reported by BTCManager, back in June 2018, the CEO of ShapeShift, Erik Voorhees condemned draconian cryptocurrency regulation by governments, labeling it “superfluous” and “harmful.” In hindsight, these statements ring all too familiar in the fast-changing world of crypto.