New Jersey Bill Aims To Mandate Crypto Firms To License Themselves

A lawmaker within New Jersey has recently introduced a new bill. This bill seeks to create mandatory licensing for the crypto business to operate within the state.

Mandatory Registration

This bill, aptly dubbed the Digital Asset and Blockchain Technology Act, had been filed within a US state that has no clear regulations for the crypto industry to speak of, according to the official announcement. Should this bill be passed, it will work miracles for New Jersey’s crypto industry.

The bill itself is aiming to make registration of crypto businesses mandatory. The companies in question must register with the New Jersey Department of Banking and Insurance. Should another state have ties with the New Jersey government on these matters, companies within that state must register like companies within New Jersey proper.

Full Legal Disclosures

Should this bill be passed, crypto companies are mandated to disclose the legal name it holds, as well any trade or fictitious name that they use to do business under. Furthermore, crypto companies will be obligated to provide details regarding its counter-terror financing and anti-money laundering measures that it is undertaking.

The company is further mandated to disclose a list showing any suspension, rejections, license revocation, or any other disciplinary action that was taken against the applicant in another state. The company is further mandated to list all deferred prosecution agreements, pending criminal proceedings, and past criminal convictions.

An Unprotected Region

Yvonne Lopeze, a New Jersey Assemblywoman, explained that Jew Jersey has a large amount of “ATMs that dispense Bitcoins.” Even so, Lopeze told that the majority are unaware of what Bitcoin also is. As such, she stated that New Jersey must take steps to allow the sector to develop and expand, but in such a way that consumers investing in crypto is protected.

An essential fact to note is that Lopez was the one that introduced this bill in the state assembly.

The bill further mandates the crypto business to fully disclosed the terms and conditions of the account of a consumer. This is prescribed to happen at the time the consumer contracts for the various services the crypto business can provide. Furthermore, a crypto business will be mandated to provide information regarding charges and fees given.

Just next to New Jersey, the state of New York is infamous within the crypto industry as being the toughest to gain crypto licensing from. This licensing is mandatory to operate within its borders, with many businesses leaving the state to look for less controlled pastures.