Shapeshift Admits ‘Imposition of KYC’d Accounts’ Hurt Company Financially

The immediate digital asset alternate platform ShapeShift has laid off one-third of its group as a result of of the “dramatic and severe” crypto recession in addition to being cautious in “a challenging regulatory environment.”

Crypto Winter Cold Bites Shapeshift

In an in depth announcement, the corporate’s CEO, Erik Voorhees, revealed “with a heavy heart” that the corporate has let 37 of its staff go or one-third of its group. Voorhees:

Today, we let 37 staff go, decreasing the scale of our group by a 3rd. It’s a deep and painful discount, mirrored throughout many crypto corporations on this newest bear market cycle.

According to the CEO, the problems inside the firm which led to firing folks have been structural, authorized, monetary, and customer-related.

Shapeshift shouldn’t be the primary firm to really feel the unfavourable results of 2018’s extended bear market. Bitcoinist reported that trade large Bitmain has laid off its complete Bitcoin Cash growth group final month.

KYC Stung Financially and Psychologically

One of the explanations for which ShapeShift has reached some extent the place it needed to lay folks off based on its CEO is introducing know-your-customer (KYC) accounts.

Vorhees famous:

Business was declining from each combination market recession and elevated competitors. Our imposition of KYC’d accounts, themselves the consequence of attempting to be cautious in a difficult regulatory surroundings, induced many of our most respected API companions to go away us for rivals who haven’t perceived regulatory dangers in the identical approach. We anticipated it, however nonetheless, it stung each financially and psychologically.

The immediate on-line alternate introduced obligatory KYC necessities again in September 2018, leading to a backlash from some customers.

Immediately after that, self-hosted cost processor BTCPay introduced that it intends to ditch the platform and use an interim answer as shortly because it’s attainable.

“The shapeshift button does not work anymore, and they will probably require KYC soon. Instead, I am thinking about open sourcing ( by making it easy for anyone to be liquidity provider like shapeshift,” BTCPay Server tweeted in September 2018.

Were laws the largest think about ShapeShift downsizing? Let us know within the feedback beneath!

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