Home Bitcoin Texas Representative Wants to Ban the Anonymous Use of Cryptocurrency

Texas Representative Wants to Ban the Anonymous Use of Cryptocurrency

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A Republican member of the Texas House of Representatives, Phil Stephenson, has simply launched a invoice that might require residents of the state to determine themselves if they need to use cryptocurrencies. H.B. No. 4371 particulars that people who ship and obtain digital currencies have to be identified. Although, if the person occurs to use a “verified identity digital currency,” then they don’t have to submit verification to the state.

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Texas House Bill 4371 Wants Digital Currency Users in Texas to Verify Their Identities

Texas might be the first state in the U.S. to ban the nameless use of cryptocurrencies. Representative Phil Stephenson, a staunch Texas Republican and authorized public accountant (CPA), desires residents in the state to confirm their identities in the event that they select to use digital currencies. Stephenson’s H.B. No. 4371 says that if the invoice turns into legislation it is going to take impact on Sept. 1, 2019. Section 662.02 particulars that earlier than accepting digital forex fee, an individual should confirm the id of the sender. Oddly sufficient the particular person is “not required to verify the identity of a person sending payment if the payment is sent by a verified identity digital currency.”

H.B. No. 4371 additional states:

[Texas] could not use a digital forex that’s not a verified id digital forex — 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 id digital currencies.

Texas Representative Wants to Ban the Anonymous Use of Cryptocurrency
Representative Phil Stephenson

‘Attacking the Anonymous Use of Cryptocurrencies’

Stephenson’s invoice notes that the businesses talked about will present the public with instruments to allow them to decide the distinction between a verified id digital forex and one that gives anonymity. The Texan lawmaker, who just lately gained his seat in opposition to Democratic challenger Jennifer Cantu, believes his CPA will help the state with monetary conditions. However, free-market nonprofit group Texans for Fiscal Responsibility gave Stephenson a 40 p.c favorable ranking, which may be very low for a Republican lawmaker.

Texas Representative Wants to Ban the Anonymous Use of Cryptocurrency

Cryptocurrency advocates had been fairly flustered to hear the information {that a} invoice making an attempt to ban nameless digital forex use was submitted. “Congratulations Texas, you’re the first state to formally attack and attempt to ban anonymous use of cryptocurrency in the U.S.,” Andrew Hinkes, cofounder and common counsel of Athena Blockchain, exclaimed on Twitter.

Hinkes added:

Other questions: Would any present cryptocurrency or digital forex qualify as a ‘verified identity digital currency’ as outlined? What stage of ‘ID’ is required to be ‘verified’? State issued? Are 4 state administrative our bodies the proper entities to ‘promote’ a digital forex?

It’s secure to say that a big majority of cryptocurrency followers had been disheartened to hear about the invoice. Texas is well-known for being a pleasant area when it comes to digital currencies and total private freedoms like gun rights. If the invoice passes then it might very effectively have an effect on enterprise operations and add all kinds of different challenges for residents who consider in privateness.

What do you concentrate on Republican Phil Stephenson’s H.B. No. 4371? Let us know what you concentrate on this topic in the feedback part under.

Image credit: Shutterstock, Pixabay, and Capitol.texas.gov.

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Tags on this story
Anonymity, Anonymous, Credit Union Commission, Cryptocurrencies, Department of Banking, Digital Currencies, H.B. No. 4371, Identity, Identity Digital Currencies, N-Featured, Phil Stephenson, Privacy, Republican, State Securities Board, Texan citizens, Verification

Jamie Redman

Jamie Redman is a monetary tech journalist residing in Florida. Redman has been an energetic member of the cryptocurrency neighborhood since 2011. He has a ardour for Bitcoin, open supply code, and decentralized functions. Redman has written hundreds of articles for information.Bitcoin.com about the disruptive protocols rising at this time.

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