Shapeshift now requires government ID for any conversion, even a low amount crypto-to-crypto. It is disappointing because I used their services 2 years without problems and it was quick and convenient. Please consider to boycott Shapeshift. Crypto should be free to use for everyone, anonymously and also possible for people without government ID. There is no reason to require government ID for small crypto-crypto trades especially when you can make small crypto-fiat trades (<$1000) without KYC.
I think boycotting them is taking it too far.
And yes, there's a reason to require KYC for crypto trades, regardless of size. I'm pretty sure Erik Voorhees never wanted to require KYC as he is a advocate of privacy. But like I said on my previous reply, ShapeShift is a business; and as a business, they should make sure that their service keeps up and running. And one of the things they need to do to achieve this is to comply with the government's requirements. Though the government might not be requiring them to require KYC for now, I think it's pretty much inevitable.