Texas will not treat Bitcoin and other virtual currencies as legal money, according to a new memo from the Texas Department of Banking.Yet some companies that deal in Bitcoin transactions could draw state oversight, even if they are based outside of Texas.Texas Banking Commissioner Charles Cooper issued a memo this month outlining the agency’s policies involving virtual currencies like Bitcoin.“At this point a cryptocurrency like Bitcoin is best viewed like a speculative investment, not as money,” Cooper said in a statement.In his memo, Cooper provided reasoning that echoed the IRS.Last month, the federal agency announced that, for tax purposes, it would treat Bitcoin as property instead of currency because no government recognizes the virtual currency as legal tender.“Because neither centralized virtual currencies nor cryptocurrencies are coin and paper money issued by the government of a country, they cannot be considered currencies under the statute,” Cooper’s memo reads.

While Texas does not have a state income tax, the state's Department of Banking does regulate certain financial transactions and license financial institutions.An exchange of Bitcoin for U.S.dollars between two parties would not draw the agency's interest, according to the memo.But some third-party Bitcoin exchanges are already drawing state scrutiny because of the way they handle transactions involving U.S.currency and Bitcoin, according to Daniel Wood, assistant general counsel at the Department of Banking.Cooper’s memo states that such exchanges are involved in “money transmission” because they act as an “escrow-like intermediary” that holds onto a buyer’s funds “until it determines that the terms of the sale have been satisfied before remitting the funds to the seller.” Such exchanges do not need to be based in Texas to fall under the state’s regulations, Wood said.“If they do business with Texas consumers, we can force them to get a Texas license,” he added.

Under the state finance code, a Bitcoin business conducting the type of money exchanges subject to state regulations could be required to meet a minimum net worth requirement of $500,000.The memo puts Texas ahead of the curve on determining the state regulatory environment for currencies like Bitcoin, Wood said.“I would say this is the first memorandum to offer specific guidance on how Bitcoin and cryptocurrency fit into the current regulatory scheme from a state,” Wood said.The agency’s decision to write the memo was not instigated by any particular event or company, Wood said, though he added that the agency has heard from at least one entrepreneur interested in creating some sort of currency exchange involving Bitcoin.“There’s a fair amount of business going on involving virtual currencies, and there’s a lot of confusion,” Wood said.“There was some motivation to get out there quickly and help guide the national discussion.” Over the last year, Bitcoin has drawn increasing international attention and controversy.

The lack of government oversight that supporters have championed has also drawn concerns about the currency’s reliability.litecoin questionsGox was the world's leading Bitcoin exchange.bitcoin pc configurationIn February, the Tokyo-based company suspended trading and announced that it had lost Bitcoins worth more than $400 million.typical litecoin mining rateThe company is currently in the midst of bankruptcy proceedings in U.S.litecoin investorsfederal court in Dallas.reddit bitcoin litecoinSteve Stockman, R-Friendswood, a Bitcoin supporter, has been critical of the IRS’s decision to treat virtual currencies like money.bitcoin bubble reddit

This week, he announced plans to file a bill to change the federal tax status of such currencies to currency."I don't think anyone really has a flavor for what they want, and I want to start the Bitcoin conversations,” Stockman said in his weekly email newsletter to constituents.raspberry pi bitcoin projectStockman’s office did not respond to a request for comment Friday.bitcoin miner 3 th/sWhat factors make Texas an ideal state for Bitcoin mining and Blockchain marketing, despite the reluctant attitude among governments and central banks around the globe towards the Cryptocurrency phenomenon?ethereum etc vs ethHow ideal is the Bitcoin environment for the residents of the state?Are there any new frontiers for the oil and gas industry that are being created by Bitcoin in Texas?

CoinTelegraph decided to ask Robert Gonzalez about the problems of Bitcoin and the Blockchain in Texas.Gonzalez, the founder of UTXO, a Bitcoin mining company based in Houston Texas, says the goal of his company is in creating a way to provide clean bitcoins frictionlessly to people by linking miners to traders.Cointelegraph: How would you rate the development of the Bitcoin and Blockchain market in Texas?Robert Gonzalez: Texas is still in a prosperous growth with Bitcoin, and an ideal state in which to work with Bitcoin.The regulations for Bitcoin in Texas make it great for any future and existing Bitcoin enterprise in which to work.The blockchain market with the help of Bitcoin is creating a new frontier for different industries (oil and gas), that will provide significant avenues of financial ease in those industries’ business operations.CT: Are there any peculiar problems encountered by Bitcoiners in Texas, and what could these problems be?RG: As of now I have not encountered any hardships with businesses exploring Bitcoin business in Texas.

Like I mentioned before, Texas is a prime state to work with in the Bitcoin/blockchain technology .CT: Do you have any laws or license requirements in the state for Bitcoin and Blockchain?RG: Yes, since we mine the bitcoins with our mining partners that help us, it requires a certain license to do so.As long as you mine Bitcoin you can sell Bitcoin without the option of requiring a money transmitter license, but only if you sell to Texas residents.That is where our company UTXO comes into place.Individuals and business can purchase coins in less than an hour that are brand new coins.CT: How is the relationship between the banks and Bitcoin/Blockchain companies in Texas?RG: Since banks work with federal guidelines and regulations, we tend to tell our regional banks exactly what we do, and they understand it and for now we are okay on those sides.Most of our business is cash, either meeting with our agents or depositing into our bank account.CT: How many BTMs are there in Texas?RG: The amount of Bitcoin atms in Texas is about less than 10 in total.

The problem with using machines is maintaince, and that is something our company has solved by having agents or representatives in major cities willing to meet with customers to assist them.We put a face on our company.Bitcoin was built for the people and we like to keep it that way, face to face transactions are what is keeping our traction up.CT: How many outfits accept bitcoin in Texas that you know of?RG: That's a good question, in Houston I know of a hand full of cafes that accept Bitcoin.Most of our customers seem to purchase Bitcoin to hold as an investment, others purchase things online like on Overstock etc. the others resell our coin which we don't mind.Our terms of service specifically require intensive checks on our customers to make sure they are who they say they are, and to make sure they aren't using anything for illegal or illicit activities.CT: How easy is it to exchange Bitcoin with fiat currencies in Texas?RG: I would say it is pretty easy, almost as easy as purchasing coins through us.