The Legislature of the state of Texas has proposed a bill, which requires users to identify themselves while using digital currencies. The bill contains the definition if digital currencies, distributed ledgers, digital wallets and Verified Identity Digital Currencies (VIDC). The bill defined a digital currency which enables the true identities of the sender and the receiver to be known before a person has access to other’s digital wallet.
According to the bill, a person must validate the identity of the sender before accepting payment in digital currency. The proposed regulation also detailed that this state may not utilize a digital currency which has not a validated digital currency. To support the application of Verified Identity Digital Currencies, the bill further acknowledged that the Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety and State Securities Board will work together. Such support is defined as offering tools to differentiate VIDCs from other digital currencies, educating law enforcement and fortifying the use of VIDCs. On the execution of the law, the bill also noted that the aforesaid organizations should adopt rules to carry out these directives.
Other nations already have taken or considering on this take. Recently, the Duma Committee on Financial Markets in Russia also declared that they are considering the adoption of a mandatory identification process for digital assets users. In February this year, it was reported that the Texas State Securities Board released a total of 16 orders against suspected Cryptocurrency scam investments in last year. In the same month, the state securities regulator in Texas declared that it had reached an agreement with 4 Cryptocurrency-based firms it laid blame on selling unauthorized securities.