Erik Voorhees, CEO and Creator of Shapeshift, believes the industries are undergoing a “transformation” from analog, fiat, and bank-based financing to decentralized, virtual, crypto-based financing. Nevertheless, Voorhees stated that whilst some businesses must be legal in order to operate with banking firms, this is a fair and appropriate argument since financial institutions are supervised and cannot function with a cryptocurrency company that does not meet certain criteria:

“That’s a different kind of argument than saying KYC should exist because you shouldn’t have anything to hide so it comes down to you know to what degree people want to be pragmatic… there’s certainly a lot of people in the crypto world who are simply interested in it growing and being popular no matter what. And, so those people will of course want every financial institution involved right away and they would be more inclined to tolerate KYC [norms.]”

Though praising the business strategy of digital currency platform Coinbase, Voorhees claimed that such companies function like banks and are highly controlled. He believes that financial services firms should be interested as a connection, not as a destination, and stated:

“I’m a fan of them [Coinbase] because they are actually building part of that bridge and I think that’s super important, but, I don’t think that the destination should be one in which everyone has to succumb to complete financial surveillance by the government. I think that’s incredibly dangerous.”

KYC là gì? KYC giúp ích thế nào trong đầu tư crypto - BitcoinVN News

Everyone who thinks about human rights and the limits of authority, according to Voorhees, should be completely opposed to a society in which innocent individuals are monitored.

“I can understand the argument that if someone is charged or suspected of a crime that they start losing certain rights from that but to mandate surveillance and endangerment of all people innocent seems to be completely unethical on its face.”

Voorhees also stated that the presence of such regulations has not stopped institutions from engaging in money laundering, a viewpoint shared by Galaxy Digital’s Mike Novogratz.

The creator of Galaxy Digital described how many big European banks have been punished for money laundering violations. These included institutions in the UK such as HSBC, Barclays, RBS, and Standard Chartered, according to documentation.

The sum of money laundered in the UK has increased to £150 billion ($204,789,750,000) a year, according to a National Crime Agency (NCA) spokesperson. Top European banks have charged upwards of $10 billion in penalties for money laundering offences in the previous 10 years.  Novogratz stated at that time that he had not noticed any evidences of large money laundering scheme via digital currencies.

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