Austin, Texas — House Bill 1666Regulations governing cryptocurrency digital asset providers are on the governor’s desk.
If you’re one of the millions of Texans who have invested in cryptocurrencies, chances are you have an app like Robinhood or Coinbase on your phone for trading and investing in digital currencies. .
Cryptocurrencies are relatively new and the big concern for the industry is that they are unregulated. House Bill 1666 by Rep. Giovanni Caprillione will keep your money from getting scammed or stolen by these companies.
We have seen this happening with many digital asset providers before, but most notably FTX, once one of the largest cryptocurrency exchange platforms. The company’s management is still facing lawsuits accused of taking billions of dollars from customers.
HB 1666 requires digital asset service providers to confirm in their annual reports to the Ministry of Banking:
- maintain sufficient reserves to meet its obligations to consumers;
- Allow customers to withdraw funds at any time.
- Allowing consumers to view outstanding liabilities to digital asset customers and assets held by digital asset service providers.
- Store reserves either in omnibus accounts where the customer’s digital assets are not strictly segregated from each other, or in digital assets that correspond to the customer’s obligations.
- not to mix Customer funds with funds belonging to Digital Asset Service Providers;
The bill passed unanimously in both houses.
“When you invest online, buy, trade or sell cryptocurrencies, you can rest easy knowing that your assets are monitored, controlled and have an audit trail. We protect our assets,” Capriglione said.
Failure to comply will result in penalties, including revocation of your sending license and criminal prosecution.
Cryptocurrencies are regulated around the world, but Texas will be the first in the United States, Caprione said, adding that he expects the federal government to follow suit and lightly regulate cryptocurrencies. said.
If Governor Greg Abbott signs the bill into law, it will become law in 2024.
