- He can gain strength as early as September
- But first the bill will be considered by the Senate and the governor.
Texas Legislature approved draft law on the Proof-of-Reserves system. It will require crypto exchanges operating in the state to report on their asset reserves. These reserves must be “sufficient to meet all obligations to customers.”
Now it’s up to the Senate and the governor of the state – they must approve and sign the document. If everything goes without delay, the new law will come into force before September 1 this year.
The bill amends the Texas Financial Code, the state’s main law. It must be observed by all crypto-providers that serve more than 500 clients in the state and have accumulated assets from $10 million.
In addition, the document prohibits blockchain companies from using funds owned by investors for other transactions than the original transaction requested by the client. That is, in other words, do not mix assets.
Cryptocurrency exchanges must maintain reserves in such a volume as to ensure immediate withdrawal at any time upon request of clients. Companies must choose how they report reserves to their users and state authorities.
At the end of each tax year, crypto exchanges will send a report to the State Banking Department. There must be a certificate signed by the auditor. If this obligation is not met, the authorities reserve the right to revoke the license.
