Texas Bill seeks to require identity verification to use cryptocurrency

Texas has set out on an ambitious task to create and pass a bill which will require everyone trading in cryptocurrency to verify the information of the sender before accepting any payment.  The state of Texas is hoping to implement this bill by September 2019.

Bitcoin is currently experiencing its highest high of the last 13 months and is showing resilience in the world - it will not be thrown out as easily as some governments and central banks would have hoped.

The bill states that “before accepting payment by a digital currency, a person must verify the identity of the person sending payment,” and that an exception will be made in the case “that 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.” However, the exact method that they wish to carry out this bill has not been clarified and the crypto community is still waiting for more information on the topic.

What has been mentioned is that the Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety, and State Securities Board will collaborate in order to determine the identification tools they will need to ensure the bill is carried out successfully.  However, what the state of Texas needs to take into consideration is how easy, or difficult, it could be to implement such a bill.

The people who are attempting to regulate the buying and selling of cryptocurrencies in other countries is proving difficult as they struggle to reckon with the new technology.  The censorship-resistance of cryptocurrency transactions will make it difficult for the state of Texas to enforce this bill.  Cryptocurrency is, as a rule, resilient to the rules and regulations of the government and central banks.

Some of the other US states have decided to incorporate cryptocurrency into their financial business laws.  Wyoming is an excellent example of a state which has successfully adopted cryptocurrency and allows both individuals and businesses to own crypto-assets without needing an intermediary for custody.  The state of Wyoming has stated that “virtual currency is intangible personal property and shall be considered money.”

Governments and individuals will always run into problems when attempting to regulate cryptocurrency as that goes against its very nature.  Whether the state of Texas will be successful when passing the new bill will have to be seen later into this year.