Since efforts to put in place adequate regulatory rules have failed, lawmakers all over the world have adopted a new strategy, and that is to restrain the anonymity of cryptocurrencies. Recently, a member of the Texas House of Representative has presented a bill that will place a restriction on the anonymous use of digital assets in the state. If the bill is passed, it will become a law from September 1st, 2019.
Identity Verification Of Crypto Users
Phil Stephenson, the Republican member of the house, In the bill number 4371 proposed that all individuals making use of cryptocurrencies should undergo proper identification. However, the bill made it clear that in the event a user is already making use of a “verified identity digital currency,” there will be no need for the submission of additional identity verification to the state.
“[The user] not required to verify the identity of a person sending payment if the payment is sent by a verified identity digital currency,” the bill noted.
“[Texas] may not use a digital currency that is not a verified identity digital currency — The Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety, and State Securities Board shall collaborate to encourage the use of verified identity digital currencies,” House Bill No. 4371 stated.
Not Everyone Is In Support
A lot of crypto advocates both in the state and all over the country have highly criticized the bill proposed by the Lawmaker.
With respect to the bill, Athena Blockchain’s co-founder and general counsel, Andrew Hinkes, asked some very important questions: “Would any existing cryptocurrency or digital currency qualify as a ‘verified identity digital currency’ as defined? What level of ‘ID’ is required to be ‘verified’? State issued? Are four state administrative bodies the right entities to ‘promote’ a digital currency?”
Is The Privacy Of Cryptoassets Such A Bad Idea?
In the fight against the privacy of digital assets, Texas is not alone as the Finance Committee of France’s National Assembly is also in on the fight. In a recent report, the committee discussed in details the use of digital assets and the blockchain technology and called for the total ban of cryptocurrencies that are privacy-oriented such as Zcash and Monero.
At the beginning of January, a report was published by Finance Magnates which stated that Texas is taking into account the mandate licensing for issuing the dollar-pegged stablecoins.