After the introduction of a draft bill by the Republican representative in Texas, Phil Stephenson, the citizens are required to provide proof of identity before they can be allowed to use cryptocurrency.
This is a major step towards the institutionalization of crypto assets as the bill identifies blockchain and cryptocurrency technology as a means for users to generate and use financial aliases.
The regulatory authorities suggested that the state work towards educating the law enforcing agencies about the cryptocurrency technology, encouraging the utilization of verified digital currency IDs.
If the Texan bill HB 4371 is successfully enforced, it would impose a legal requirement for the identity of both the sender and receiver involved in the transaction to be registered in order for the transaction to take place. This would allow state departments to make a distinction between crypto customers who have been verified and those who have not.
After the proposal of this bill, many are content that the state is on the right path regarding its regulations and conditions when it comes to crypto assets, easing the adoption and increasing reliability and security in the crypto asset space.
While the bill may ask for Texans to register their identities, it also imposes a condition on Redditors to stop posting anonymously. Many congratulated Texas on their effort towards a more secure future for encrypted currency.
However, this meek step is not enough to put a stop to multiple fake identities generated by users, and many expressed their concerns regarding the use of resources for this purpose, which could be redirected towards a bigger problem, such as capturing banking scammers.