Texas Lawmaker Introduces Bill to Ban Anonymous Crypto Transactions

After failing to put proper regulatory rules, lawmakers around the world are now focusing on curbing the anonymity associated with digital assets. A member of the Texas House of Representative has recently introduced a bill to ban the anonymous use of cryptocurrencies in the state.
In the bill number 4371, the Republican member of the house Phil Stephenson proposed  sending or receiving cryptocurrencies. However, the bill clarifies that if a user is already using a “verified identity digital currency”, then there is no need to submit any identity verification to the state.

“[The user] not required to verify the identity of a person sending payment if the payment is sent by a verified identity digital currency,” the bill stated.
“[Texas] may not use a digital currency that is not a verified identity digital currency — The Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety, and State Securities Board shall collaborate to encourage the use of verified identity digital currencies,” House Bill No. 4371 added.
If passed, the proposals in the bill will come into effect from September 1, 2019.
Not Well Received by the Community
Stephenson’s move, however, was highly criticized by the crypto advocates in the state as well as in the country.

this bill in texas is scary.

— mfkon (@mfkonn)

Mentioning the bill, Andrew Hinkes, co-founder and general counsel of Athena Blockchain, raised a few critical questions: “Would any existing cryptocurrency or digital currency qualify as a ‘verified identity digital currency’ as defined? What level of ‘ID’ is required to be ‘verified’? State issued? Are four state administrative bodies the right entities to ‘promote’ a digital currency?”

Congratulations , you’re the first state to formally attack and attempt to ban anonymous use of in the US.

— Drew Hinkes (@propelforward)  

Is Anonymity Good or Bad?
Texas is not alone to attack the privacy of the digital currencies as recently the Finance Committee of France’s National Assembly, in a report elaborating the use of crypto assets and the blockchain technology, proposed a like Monero and Zcash.
Earlier in January, that Texas is considering the mandate licensing for issuing the dollar-pegged stablecoins.