ShapeShift’s founder, Eric Voorhees, announced the development in a tweet on April 3, saying:
“If you're in the US, you can buy Bitcoin instantly in the new ShapeShift.com platform with your debit card. You can literally have the Bitcoin, in your possession, five minutes from now.”
KYC processes compliance
ShapeShift’s new platform doesn’t require account verification to purchase cryptocurrencies, which has led to questions from the tweet’s commentators.
When asked about the project’s Know-Your-Customer (KYC) policy, Voorhees confirmed that KYC is not required. This is due to the fact that, as is the case with Shapeshift, the platform does not actually hold custody of customer funds. Since transfers occur P2P between wallets owned and controlled by individual users, KYC measures are not strictly necessary.
ShapeShift has not yet released a mobile app, and only allows customers to purchase crypto via debit card through its web platform.
Crypto industry actively adopts debit and credit cards
Crypto exchanges have been actively adding support for debit cards, with some of them even issuing their own. Most recently, major crypto exchange, Binance, entered the crypto debit card sector with news of an official Binance Card. Issued by Visa, the card is initially only available in South East Asia, though the company states that other regions will be unlocked soon.
Earlier this year, Coinbase became a principal member of Visa, which allows it to issue debit cards without relying on third parties. The company’s Coinbase Card connects to each user’s Coinbase account, allowing individuals to spend their crypto balance via an instant conversion to fiat.