{"id":148396,"date":"2021-01-06T17:00:00","date_gmt":"2021-01-06T14:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-exchange-shapeshift-integrates-dexes-relieves-user-kyc-burdens\/"},"modified":"2021-01-06T17:00:00","modified_gmt":"2021-01-06T14:00:00","slug":"crypto-exchange-shapeshift-integrates-dexes-relieves-user-kyc-burdens","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-exchange-shapeshift-integrates-dexes-relieves-user-kyc-burdens\/","title":{"rendered":"# Crypto exchange ShapeShift integrates DEXes, relieves user KYC burdens"},"content":{"rendered":"

“# Crypto exchange ShapeShift integrates DEXes, relieves user KYC burdens <\/strong>”
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Non-custodial cryptocurrency exchange ShapeShift is announcing today the integration of nearly a dozen decentralized exchange (DEX) protocols \u2014 a move designed to relieve both the company as well as users of KYC burdens, while simultaneously offering traders superior liquidity, pricing, asset availability, and security.\u00a0<\/p>\n

Prior to the integrations, ShapeShift required users to undergo a KYC process in order for the company to remain legally compliant as the exchange served as a counterparty to user trades. In an interview with Cointelegraph, ShapeShift CEO Erik Voorhees said that regulated services will continue operating on assets that are not currently available through DEXes, such as native Bitcoin, but that \u201call non-DEX trading on ShapeShift will be retired\u201d later in the year.<\/p>\n

\u201cBy integrating our users directly to DEX trading, it means we are no longer part of the trade; we are not a custodian, a counterparty, or an intermedia<\/a>ry of any kind at any step of the process,\u201d said Voorhees. \u201cThus, we are purely a software technology<\/a> company, and in this capacity we are not regulated because we are not engaged in a regulated activity.\u201d<\/p>\n

According to Voorhees, newly-supported DEXes include popular decentralized finance (DeFi) protocols \u201cUniswap, Balancer, Curve, Bancor, Kyber, 0x, mStable,\u201d as well as a half dozen others. Additionally, the list of integrations \u201cwill continue to expand as DEX technology permits.\u201d<\/p>\n

The move from ShapeShift is part of a wider trend of exchanges, wallets, and other crypto services providing access to DeFi platforms \u2014 a movement, according to Voorhees, born of the maturation of a DeFi ecosystem that is \u201crapidly becoming superior to the status quo.\u201d<\/p>\n

Voorhees notes however that he is suspicious of \u201ccentralized, custodial services\u201d offering on-ramps to DeFi, also known as \u201cCeDeFi\u201d \u2014 a phenomenon Voorhees thinks will be short-lived.<\/p>\n

\u201cThey are incompatible, because they have to censor users and put up access controls. For example, a centralized exchange in Venezuela is restricted by capital controls, while DeFi is not (a decentralized protocol operates exactly the same in Venezuela as anywhere else).\u201d<\/p>\n

By contrast, Voorhees argues noncustodial services like Shapeshift are a more natural fit for DeFi integrations, and as such these initial DEX integrations might also be the foundation for a wider series<\/a> of onramps to more varied DeFi products \u2014 including, hinted Voorhees, a decentralized Bitcoin exchange service. <\/p>\n

In the end, providing these services to users is not a perk, but instead a market reality. <\/p>\n

\u201cTwo or three years ago, decentralized trading existed, but was not liquid or easy enough to be compelling at scale,\u201d he said. <\/p>\n

\u201cThat has changed, and as the industry evolves, so must we\u2014we must always be working in the interests of our users and toward the advancement of self-sovereign finance.\u201d<\/p><\/blockquote>\n