Texan Lawmaker Looking to Ban Anonymous Use of Crypto in the State

Texan Lawmaker Looking to Ban Anonymous Use of Crypto in the State

virtual currencies

Phil Stephenson, who is a member of the House of Representatives in Texas and is also a Republican has passed a new bill which requires people residing in the state to reveal their identity if they wish to make use of virtual currencies, according to a recent report.

The bill which was tagged: H.B. No. 4371 states that individuals who send and receive cryptocurrencies must be identified. However, anyone who uses a verified identity virtual currency does not have to submit verification to the state.

Texas Could be the First to Pass Such Bill

Texas might become the first state in the U.S. to ban the unidentified use of virtual currencies. A loyal Texas Republican and certified public accountant (CPA), Representative Phil Stephenson has passed a new law which requires residents in the state to verify their identities if they wish to utilise digital currencies. If the bill is passed into law, it will be become effective starting from 1st of September, 2019.

Section 662.02 of the bi states that “before the acceptance of a cryptocurrency payment, the user has to verify his/her identity.” Although, if the user is sending payment via a verified identity digital currency, there is no need for verification.

H.B. No. 4371 further states:
“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.”

Also, Stephenson’s bill highlighted that agencies stated above have to provide the public with equipment which will help identify a verified cryptocurrency.

Low Rating for Stephenson

Phil Stephenson is of the belief that his CPA will help the state with financial issues. However, Texans for Fiscal Responsibility which is a free-market nonprofit organization rated Stephenson at 40% which is very low for a Republican lawmaker. Stephenson just recently won his seat against Jennifer Cantu, a Democrat.