Crypto Exchange ShapeShift Rolls Out Membership Program, Will Collect Users’ Personal Information

News and Analysis

Cryptocurrency and digiital asset exchange ShapeShift has announced it is launching a membership program for its users. While optional at first, this program will soon become a mandatory feature and require basic personal information to be collected.

Positioned as a loyalty program, the initiative will see ShapeShift offer a range of benefits while also moving to start collecting some personal information from its users, essentially forming a pivot away from its “exchange without accounts” model.

Nothing that “we would prefer if the collection of personal information was not a mandatory element” and that “this detail sucks,” CEO Erik Voorhees wrote:

“We would prefer if the collection of personal information was not a mandatory element. We still firmly believe that individuals, regardless of their race, religion, or nationality, deserve the right to financial privacy, just as they deserve the right to privacy in their thoughts, in their relationships, and in their communications. Such privacy is a foundational element of a civil and just society, and should be defended by all good people. We remain committed to that cause and it is best served if we are smart about our approach.”

ShapeShift members will receive discounts on exchange rates, volume-based rewards for transacting with the FOX token and higher transaction limits.

The broader changes, according to Voorhees, are a result of requests from ShapeShift users for account-related features, an “increasing interest in … tokenization” and the regulatory uncertainty surrounding cryptocurrency exchanges at present, he said.

“Membership is, in essence, an advanced loyalty program. It will lead over time both to better pricing and a superior user experience,” insists Voorhees.

He also stressed that ShapeShift will remain a non-custodial exchange, meaning it will not hold customer funds.

Last month, ShapeShift acquired a cryptocurrency trading start-Up Bitfract

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