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Aiming to strengthen regulation within the digital asset trade, the Texas legislature has enacted bipartisan Home Invoice 1666. Set to take impact on September 1, 2023, the laws imposes rigorous necessities on digital asset service suppliers when it comes to dealing with buyer funds.
Digital asset service suppliers, particularly these serving over 500 clients or holding not less than $10 million in buyer funds inside Texas, are prohibited from merging buyer funds with their very own underneath the brand new regulation. This provision contains the supplier’s working capital, proprietary accounts, digital belongings, and fiat foreign money.
To bolster transparency and accountability, the invoice mandates that suppliers provide clients quarterly accountings of excellent liabilities and belongings held in custody. Moreover, an unbiased auditor should have steady entry to a pseudonymized model of the client’s info.
The laws additionally empowers the Texas Division of Banking to droop or revoke the supplier’s cash transmission license if present in violation of the brand new necessities, thereby implementing a regulatory oversight mechanism.
The enactment of Home Invoice 1666 showcases Texas’s efforts to steadiness the expansion of the digital asset market with shopper safety, setting a precedent that different states might comply with.
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