Kudos to @ShapeShift_io for refusing to become a honeypot of PII just to satisfy NY regulators. t.co/Zc2cupWgCk
"We either would have to do something we're not comfortable with, or leave New York. It's a moral and ethical stand we're going take."
ShapeShift, a popular cryptocurrency exchange based in Switzerland, terminated its services in New York today, due to the state’s BitLicense regulations for digital currencies. Erik Voorhees, Shapeshift Founder and CEO, told CNBC:
Voorhees has decided not to to comply with the BitLicense, explaining that ShapeShift is not willing to take the risk of exposing its users’ personal information, leaving them susceptible to potential data breaches or hacking attacks. The exchange is known for its ease of use because it doesn’t require users to create accounts.
According to the NYDFS, the set of regulations for digital firms were issued to avert fraud, money laundering and “funding for terrorism,” and to uplift consumer confidence.
In response, he announced the creation of a new website campaign called PleaseProtectConsumers.org. The website headers says, "Censored jurisdiction ... due to regulations which mandate the extraction of your personal, private information. This jeopardizes your safety, so we refuse to do it." So far, Shapeshift is listed as the only participating organization, but others may soon join their protest.
Andreas Antonopolous showed support for Voorhees on Twitter:
“Identity theft is ... more costly to society than many other forms of theft and crime. It is pervasive because the antiquated financial system — based on credit cards and banks — only works when personal information is attached to your transaction. Bitcoin has finally solved this problem, by enabling 100% secure transactions without attaching your private information. Now, New York wants to mandate that consumers continue to be put at risk, even though technology has provided a solution.”
“We always recognized that there is going to be some part of this community that is against even pretty standard financial regulatory oversight measures, such as anti-money laundering controls and other consumer protections. That said, one digital currency company has already received a license from NYDFS and a number of others have stated they intend to seek BitLicenses shortly. Ultimately, we believe that prudent regulation will be important to building greater consumer confidence in digital currency and sparking wider adoption.”
The New York Department of Financial Services (NYDFS) responded to ShapeShift’s announcement. Their spokesman stated:
The company recently created the first iPhone app for trading “every major” digital currency, and they also offer users the ability to buy gold and altcoins, “avoiding fiat entirely.”
While Shapeshift refuses to collect and provide personal information about its users, they say they would be willing to provide IP logs, wallet addresses and general information on the devices that access the exchange, if authorities take the necessary steps and meet the legal requirements for requesting such information.
Voorhees pointed out the "epidemic" of identity theft. He said:
Global AML Watchdog to Release Crypto Regulations By Next June
A global money-laundering watchdog has said it will begin publishing rules for international cryptocurrency regulation by next summer.
According to a Reuters report Friday, the Financial Action Tas
Sia Network Releases Hard Fork Code to Block Crypto Mining Giants
The sia blockchain network has released the formal code for an imminent hard fork that will block miners using hardware produced by Bitmain and other major manufacturers.
David Vorick, founder and
North Korean Hacking Group Lazerus Stole $571 Million in Cryptos: Report
North Korea's infamous hacking group, dubbed Lazarus, has managed to steal over half a billion dollars in cryptocurrencies, a report indicates.
According to an article published Friday by The Next
Bitcoin's Price Breaks Through Key Support As Stocks Go South
Bitcoin (BTC) has dropped out of the tight trading range seen recently, paralleling losses in the U.S. stock markets.
The leading cryptocurrency, which was trapped in a triangle pattern (narrowing
Chip Maker TSMC Forecasts Weaker Crypto Mining Demand in Q4
Chip-making giant Taiwan Semiconductor Manufacturing Company (TSMC) has predicted weak demand for processors from cryptocurrency miners for the fourth quarter.
TSMC, the primary supplier for crypto
Crypto Exchange Huobi Now Lets Users Swap Between 4 Different Stablecoins
Huobi, the Singapore-based cryptocurrency exchange, has just launched a new solution that enables users to switch between different types of fiat currency-pegged cryptocurrencies, or stablecoins, in e
Bitcoin Price Eyes Triangle Breakout Above $6.4K
Bitcoin (BTC) is again trading in a narrowing price range above $6,400, but the lateral trading may soon give way to a rally, according to technical studies.
The price consolidation comes after Mon
Security firm G4S Has Launched a Crypto Custody Service
U.K.-based security services company G4S now offers a crypto custody service aimed to protect investors' holdings of digital assets.
Announcing the move in a press release on Oct. 16, the firm said