single-image

Texas: Proposed Bill Requires Identification of Buyers Paying in Digital Currencies

A bill requiring users to identify themselves while using digital currencies has been filed on March 8, according to the official Texas legislature portal.

The bill’s text contains the definitions of digital currencies, digital wallets, distributed ledgers and verified identity digital currencies (VIDC). The latter is defined as “a 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.”

Per the proposed bill, before accepting a payment in digital currency, a person must verify the identity of the person sending the payment unless a VIDC is used. Moreover, the proposed regulation also specifies:

“This state may not use a digital currency that is not a verified identity digital currency.”

The bill further declares that the Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety and State Securities Board will work together to support the application of VIDCs.

Such encouragement is defined as providing tools to distinguish VIDCs from other digital currencies, educating law enforcement and promoting the use of VIDCs. The bill also specifies how those guidelines should be implemented, noting that the aforementioned organizations should adopt rules to carry out these directives.

Recently, Russia’s Duma Committee on Financial Markets also announced that they are considering the adoption of a mandatory identification process for users of digital assets.

As Cointelegraph reported in February, the Texas State Securities Board issued a total of 16 orders against suspected cryptocurrency scam investments in 2018.

Also in February, the Texas’ state securities regulator announced it had reached an agreement with four cryptocurrency companies it accused of selling unregistered securities.

Leave a Comment

You may also like

Bitcoin

$25 Million in 2 Weeks: BlockFi Booms as Bitcoin, Ether Investors Seek Interest

single-image

The Takeaway

  • BlockFi’s interest-yielding deposit accounts, launched in beta in January and fully live this month, have attracted more than $35 million in crypto. Most of it is being lent to institutional borrowers.
  • BlockFi’s terms of service give the company significant leeway over how it uses depositors’ funds and what interest rate it can pay them. This flexibility is needed for the company to grow fast, CEO Zac Prince says.
  • Institutional investors borrow crypto at individualized terms, at interest rates from 4 to 12 percent, and BlockFi can call in the loans at any time.
  • When crypto prices move dramatically, BlockFi manages risks by making borrowers put up more collateral or selling some of it.
  • BlockFi is planning to roll out new products every six months and raise more capital.

–––––––

BlockFi wasn’t the first lending startup in the cryptocurrency market, but it’s likely the one getting the most attention these days — including some heat from community…

View More Article
Bitcoin Blockchain

Winklevoss Capital Partner Sterling Witzke: Dollar Is Not Designed for the Internet, but Stablecoins Are

single-image

Sterling Witzke has been working at Winklevoss Capital — a venture capital firm set up by the famous Winklevoss twins — for five years now. As a professional investor, she is very interested in financing early stage crypto and blockchain projects. She believes that stablecoins are perfectly designed for the needs of internet payments and will steadily gain popularity as the industry evolves.

We talked to Sterling Witzke about the future of fiat-pegged cryptocurrencies, the necessity of proper legal frameworks and the future of the maturing crypto industry.

Clarity is always good for an ecosystem

Ana Berman: How do you think, what will 2019 bring in terms of regulation? The question is related to the ads that Gemini recently launched, which said, in particular, “Crypto needs rules.” Don’t you think it undermines the whole idea of decentralization?

Sterling Witzke: The short answer is no….

View More Article
Bitcoin

Cryptopia Crypto Exchange Resumes Trading on 40 Crypto Pairs

single-image

New Zealand-based cryptocurrency exchange Cryptopia has resumed trading on 40 trade pairs, according to a tweet from the firm on March 18.

In the tweet, the company announces that it has “resumed trading on 40 trade pairs that we have quantified as secure. We will continue to expand this list as we clear more coins.” The update follows the exchange’s recent announcement of the plans to reopen trading on its platform by the end of March, following a $16 million hack in mid-January.

In January, Cryptopia suspended services after detecting a major hack that reportedly “resulted in significant losses.” The platform had initially informed the public it was undergoing unscheduled maintenance, issuing several updates before officially disclosing the breach.

After the initial reports of the hack, further evidence reportedly surfaced that hackers were…

View More Article