A Texas Congressman is requiring anti-money laundering (AML) and know-your-customer (KYC) guidelines to be used to cryptocurrencystart-ups.
Accordingto a congressional recordlaunched online today, Roger Williams, a congressman from the 25 th district of Texas, provided the remarks as an addendum to a July 8th hearing in the House of Representatives.
Entitled”Virtual Currency: Financial Innovation and National Security Implications,” the hearingwas held by Subcommittee on Terrorism and Illicit Finance of the House Financial Services Committee.
Williamsstarted his addition to the general public remarks by acknowledging cryptocurrencies are “recreating the structures of international finance” which they “offer many exciting opportunities,” however stated securities have to be imposed.
Hewent on to tension that the federal government must guarantee that the increasing usage of digital currency does not “aid the actions of terrorists and criminals.”
“Unless we in Congress develop rational and balanced policies, we may be enabling the very terrorists who wish to destroy us.”
Thecongressman argued that the compliance requirements used to other banks need to be used to digital currencies.
Tosummarize his argument, he stated, “Some in the digital currency world argue that digital finance requires a relaxation of these standards. This is absolutely incorrect.”
Texasimage through Shutterstock