Was Texas’ “Verified Identity Digital Currency” Bill Any Better than New York’s BitLicense?
Earlier this month, BitcoinExchangeGuide reported about the infamous Texas crypto bill which requires the checking for the payor’s identity by the payee accepting the payment in cryptos before the transaction goes through.
“Before accepting payment by a digital currency, a person must verify the identity of the person sending payment. A person is not required to verify the identity of a person sending payment if the payment is sent by a verified identity digital currency.
The bill would require individual citizens to spy on each other by forcing them to collect personal information from their transactional counterparts before accepting cryptocurrency payments.” reads the official bill HB 4371 that was introduced in the Texas Legislature.
Apart from outlawing of private crypto transactions in Texas, the bill plans to lead an awareness initiative headed by the Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety, and State Securities Board to encourage the use of verified identity digital currencies.
These entities plan to educate law enforcement and the general public about digital currencies and provide them with tools to identify which cryptocurrencies are acceptable and which ones are not. The initiative will also be used to promote the use of verified identity digital currencies.
There is no doubt that Phil Stephenson’s proposed bill is bad news for the digital currency and blockchain industry. This is compounded by the fact that the bill proposes a blanket ban on cryptocurrency transactions between wallets with unidentified owners. The Senator also wants all cryptocurrency users to comply with KYC processes in a bid to track the movement of digital currency.
However, all the outrage and panic was much ado about noting as the bill is already dead. Shortly after the proposal, Wyoming House Representatives Tyler Lindholm and Caitlin Long launched a scathing attack against Texas’ crypto regulation bill.
WYOMING TAKES ON TEXAS bc it proposed a state-administered surveillance apparatus for #crypto. Here for #SXSW, @Tyler_Lindholm & I went to the capitol to try to talk to the sponsor of HB4371. We didn’t meet him so shot this video & discovered we disagree on something! 🤠 pic.twitter.com/wt6PSrUDQ1
— Caitlin Long 🔑 (@CaitlinLong_) March 15, 2019
Caitlin Long has observed multiple businesses and innovative schemes be born and die due to regulatory hurdles during her 22-year career in the financial industry. She warned how this bill introduced by Phil Stephenson would be a step backward for the blockchain and crypto industry in Texas.
However, yesterday, the CEO of Mock-it Esports, tweeted concerning a conversation he had with a Texas House Director.