The US state of Texas has passed a new bill that requires Bitcoin and cryptocurrency exchanges to submit proof of reserve.
The Texas House of Representatives passed the bill on Thursday, taking an important step towards transparency between exchanges and their users.
Texas Aims to Increase the Transparency of Cryptocurrency Exchanges
The new bill requires a digital asset service provider to submit a report to the Texas Banking Department no later than 90 days after the end of each fiscal year. According to the Texas Banking Department, reports should include:
- An acknowledgment of pending obligations to digital asset customers documented by the digital asset service provider using zero-knowledge encryption or a similar industry standard.
- Documented proof of personally held customer assets using zero-knowledge encryption or a similar industry standard.
- A confirmation by an audit firm that the information contained in the report is correct and true.
- A copy of the service provider’s plan to allow auditors and customers to view the accounting of digital assets quarterly and at any time the customer’s digital assets.
Many users shared that they support the final decision of the Texas House of Representatives. The decision envisions greater transparency of various crypto exchanges rather than heavily regulated or banned altogether.
*Not investment advice.
