In an attempt to prevent the illegal and anonymous use of cryptocurrencies, many countries came forward with different ideas and bills to minimize the anonymous use of them. Texas will be the first state in the U.S. to ban the anonymous utilization of cryptocurrencies. Texas Lawmaker Wants Anonymous Use of Cryptocurrencies Banned.
A staunch Texas Republican and certified public accountant (CPA), Representative Phil Stephenson presented a bill. However, this bill requires residents in the state to verify their identities if they wish to use cryptocurrencies.
Accordingly, Stephenson’s H.B. No. 4371 details that if the bill moves toward becoming law it will take effect on Sept. 1, 2019. Section 662.02 states any individual who is involved in accepting a digital currency payment, must first verify the identity of the sender. Subsequently, Oddly enough the individual is not required to check the identity of an individual “sending payment if the payment is sent by a verified identity digital currency.”:
“[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.”
-H.B. No. 4371 further states
Stephenson’s bill makes clear that the organizations referenced will furnish people with tools. Subsequently, this will help them ascertain the dissimilarity between a verified identity digital currency and one that gives anonymity.
Also, Phil Stephenson won his seat against Democratic challenger Jennifer Cantu and trusts his CPA can assist the state with financial situations. The free-market nonprofit organization, however, gave Stephenson a 40 percent positive rating, which is quite low for a Republican lawmaker.
“Congratulations Texas, you’re the first state to formally attack and attempt to ban anonymous use of cryptocurrency in the U.S.,”
– Andrew Hinkes, co-founder and general counsel of Athena Blockchain, exclaimed on Twitter.
“Other questions: Would any existing cryptocurrency or digital currency qualify as a ‘verified identity digital currency’ as defined? State issued? Are four state administrative bodies the right entities to ‘promote’ a digital currency?”
Texas is known for being a crypto-friendly state. Also, as personal freedom in general, such as rights to guns. Many fans of digital currencies disappointed after hearing about the bill. In the event the bill passes, it could influence business activities. As well as, it will initiate a number of challenges for residents who trust in and want privacy.