Regulation

Texas bill seeks to require identity verification to use cryptocurrencies

March 10, 2019, 6:53PM EDT

A bill has been proposed in the state of Texas by Phil Stephenson that would require a person receiving cryptocurrencies as payment to first "verify the identity of the person sending payment." However, according to the bill, verification is not required "if the payment is sent by a verified identity digital currency.”

The bill defines a verified identity digital currency 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, however, does not list examples of what constitutes of verified identity digital currency. It does note that to spread awareness 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.”

These agencies would work together to provide tools to identify which cryptocurrencies are acceptable or not, educate law enforcement on digital currencies, and promote the use of verified identity digital currencies.

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