On Thursday, ShapeShift announced that it is going to stop its service in New York state because it does not wish to comply with the recently issued BitLicense.
So, one of the rules that ShapeShift.io refuses to accept is to register the personal information of all users. Obviously, this requirement is the best way to prevent fraud, terrorism and money laundering. However, it also would expose ShapeShift clients to a potential personal data leakage.
In fact, the BitLicense is considered to be “too stringent and restrictive of innovation”, according to Fortune.
Erik Voorhees, ShapeShift CEO, told CNBC that, “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 to take. We’re not going to spy on thousands of people purely to make their job a little bit easier. Disclosing customer’s IP and wallet addresses is one thing, but names and home addresses are a different matter entirely.”
At the launch of the first iOS Bitcoin trading app at the Apple’s World Wide Developers Conference, the ShapeShift founder noted: