As reported by Coindesk, Shapeshift is going to massively overhaul their Business model shifting from CEX (centralised Exchange) to DEX (Decentralised Exchange)
ShapeShift Is Going Full DeFi to Lose KYC RulesShapeShift 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.
They go on:
“Because ShapeShift is no longer acting as any form of financial intermediary or counterparty, this new, frictionless [user experience] frees users from having to provide personal, private information,” a press release from ShapeShift states.
I don't know how this kind of decision will be accounted by regulators, but for sure this is pushing SS outside the "walled garden", deemed acceptable for regulators themselves.
Remember how privacy is an undervalued asset, with the unique feature of preciousness and scarcity: once you gave it away once, it's lost impossible to have it back
Read more here:
A Treatise on Bitcoin and PrivacyNow the regulator is on a big push to create such a Walled Garden, in order to allow US investors to safely invest in BTC: there is too much money to be made to allow unregulated subjects racking up all the profits.
In the long run, the transition to a fully anonymous, KYC free environment is inevitable. But this will take time, and steps like this one go in the right direction.