Land of the free? Texas introduces bill to stop anonymous cryptocurrency trade

A US politician has put forward a bill to ban the anonymous use of cryptocurrencies in the state of Texas.

A Republican member of the Texas House of Representatives, Phil Stephenson, wants all individuals sending or receiving cryptocurrencies to be identified.

But if a user is already using a “verified identity digital currency”, identity verification is waived, according to the bill.

“[The user 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 states, as reported by Finance Magnates.

If the bill is passed, it will come into effect in September.

Anger

The bill has been widely slammed by the crypto community.

Andrew Hinkes, co-founder of Athena Blockchain, said: “Congratulations #Texas, you’re the first state to formally attack and attempt to ban anonymous use of #cryptocurrency in the US.”

Another cryptocurrency advocate added: “Please tell me this is a joke.

“As a Texas resident, this is embarrassing. Texas is home to liberty and freedom. Leave us alone!!”

Governments throughout the globe are looking at greater regulation of cryptocurrency.

While many seek to rein in crypto to stop illicit cash movement, many are also trying to introduce a framework to help the fintech sector grow and prevent ‘brain drain’.

Last week, Coin Rivet reported how President Vladimir Putin has placed a deadline on cryptocurrency regulation in the Russian Federation.

By July 1st, the Russian ruler wants to clear up ambiguity surrounding the cryptocurrency community.

Malta recently passed new laws on ICOs, exchanges, and DLT, and Prime Minister Joseph Muscat has promised to make blockchain and other emerging technologies a key focus of the country’s economic growth.

However, in the US, regulation is still dragging its heels. It’s beginning to take more shape on a state-by-state basis, rather than at a federal level.