As cryptocurrencies become more prominent globally, some officials are attempting to dismantle the anonymous nature of digital transactions with the intent to maintain state control over financial movements.
Texas steps into the spotlight with a bold move against anonymous crypto transactions, courtesy of State Representative Phil Stephenson’s newly proposed legislation. draft bill Should it become law, Stephenson's proposal would obligate crypto users in Texas to disclose their identities before conducting transactions.
Dubbed H.B. No. 4371, the proposed legislation sets forth stringent requirements for clarifying the identities of cryptocurrency users in the state. paying via cryptocurrency .
Congratulations #Texas Your journey into the world of cryptocurrencies may soon include a unique identity disclosure component if Texas gets its way. #cryptocurrency in the US. https://t.co/KHaPgQiq5H
— Drew Hinkes (@propelforward) March 10, 2019
Interestingly, the legislation provides a loophole: users can opt-out of identity verification by utilizing verified identity digital currencies, as explained in one of the bill's sections.
According to the proposed text: 'Before processing a digital currency payment, verification of the sender's identity is required, unless using a verified identity digital currency. The state is also barred from utilizing digital currencies without verified identity.'
You might be wondering: What qualifies as verified identity digital currency?
Rep. Stephenson defines Verified Identity Digital Currency (VIDC) as a digital currency ensuring sender and receiver identities are clear prior to wallet access.
Athena Blockchain's counsel and NYU professor Drew Hinkes ponders on Twitter about which digital currencies meet the VIDC criteria laid out by the proposed bill.
other questions: would any existing #cryptocurrency / #digitalcurrency The inquiry revolves around how much identification or what types are necessary for meeting the proposed VIDC standards. Should it be state-issued? Can four state bodies effectively promote digital currency?
— Drew Hinkes (@propelforward) March 10, 2019
In the same discussion, researcher Peter Van Valkenburgh from Coin Center labeled the draft as peculiar and highlighted misconceptions about digital currency functionality.
Constitution-related concerns aside, the notion of 'identity pre-verification before accessing another's wallet' diverges from real-world digital currency operations.
— Peter Van Valkenburgh (@valkenburgh) March 10, 2019
It's still early days regarding whether H.B. 4371 will advance, but its introduction marks a first in the USA. Observers keenly await other state legislative actions along similar lines.
France's parliamentary committee recommends a ban on privacy-focused cryptocurrencies.
The whispers of France's crackdown on digital privacy in the cryptocurrency sector have become distinctly louder following the National Assembly's report pondering a ban on anonymous currencies.
The committee's head remarked it might soon be prudent to stop distributing privacy coins that inherently block identity verification.
Advocates of privacy coins like Zcash, Monero, and PIVX recognize these as potential candidates for the proposed French restrictions.
Texas’s proposal stands out as more states, especially across America, show greater support for nurturing rather than curtailing crypto activities.
It’s Not All Bad in the U.S.A.
Wyoming, in particular, has been leading the charge with several crypto-forward legislative measures this year.
WHAT DO WYOMING'S BLOCKCHAIN LAWS ENTAIL? This deep dive explores the intricate legislative steps taken.
has devised something astonishing! ???? #blockchain may want to see it. Once you see what #Wyoming States such as Utah, Colorado, Pennsylvania, and Arizona are exhibiting increasingly crypto-friendly attitudes. https://t.co/mQAwrOUcHE @Tyler_Lindholm @TraceMayer
— Caitlin Long ????⚡️???? (@CaitlinLong_) March 4, 2019
With no overriding federal crypto legislation, individual states are taking the initiative, with some being notably more open than others.
William M. Peaster, skilled in Ethereum, Dai, and Bitcoin issues, has been featured widely. He dives into smart contracts, DAOs, dApps, and the Lightning Network while mastering Solidity. Connect with him on Telegram at @wmpeaster.
