Texas Proposes Bill Requiring Identity Verification in Crypto Transfers

By Shannon Wilson | March 11, 2019
Texas Proposes Bill Requiring Identity Verification in Crypto Transfers

A new crypto-related bill has been proposed by Republican State Representative Phil Stepheson in Texas, which, if approved, will require identity verification for all crypto transactions being sent.

The bill suggests that the receiver of a crypto payment should be the one to verify the identity of the sender first. Verification can be exempt only if the transfer is sent in “a verified identity digital currency“.

Such currency is defined in the bill as “a digital currency that allows the true identities of the sender and the receiver to be known before a person has access to another person’s digital wallet”.

The bill does not specify what kinds of crypto it might consider being verified identity digital currency, however. Neither are their specifics as to how these rules could be enforced.

Nonetheless, the bill did mention that there should be a collaboration between the Texas Department of Banking, the Credit Union Commission, the Texas Department of Public Safety, and the State Securities Board. The collaboration should jointly promote the use of verified identity digital currencies. They should also develop tools to distinguish which are to be acceptable cryptocurrencies, as well as educate law enforcement agencies on digital currencies.

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