A Texas Congressman is calling for anti-money laundering (AML) and know-your-customer (KYC) regulations to be applied to cryptocurrency startups.
According to a congressional record released online today, Roger Williams, a congressman from the 25th district of Texas, issued the comments as an addendum to a July 8th hearing in the House of Representatives.
Entitled "Virtual Currency: Financial Innovation and National Security Implications," the hearing was held by Subcommittee on Terrorism and Illicit Finance of the House Financial Services Committee.
Williams began his addition to the public remarks by acknowledging cryptocurrencies are "recreating the structures of international finance" and that they "offer many exciting opportunities," but said protections need to be enforced.
He went on to stress that the government must ensure that the rising use of digital currency does not "aid the actions of terrorists and criminals."
Williams said:
"Unless we in Congress develop rational and balanced policies, we may be enabling the very terrorists who wish to destroy us."
The congressman argued that the compliance requirements applied to other financial institutions should be applied to digital currencies.
To sum up his argument, he said, "Some in the digital currency world argue that digital finance requires a relaxation of these standards. This is absolutely incorrect."
Texas image via Shutterstock
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