A New Jersey lawmaker introduces a bill to regulate the cryptocurrency and digital assets industry. The bill states each virtual asset company must obtain and maintain their operation license with the authorities in the state.
In a public report released on Feb. 20, New Jersey’s Assemblywoman, Yvonne Lopez (D-Middlesex), introduced a bill titled “Digital Assets and Blockchain Act” to the House. The bill is set to be tabled on the New Jersey Assembly Financial Institutions and Insurance Committee to be discussed. If the bill passes into law, then cryptocurrency companies in the state will be required to obtain operating licenses from financial authorities.
The innovation economy keeps New Jersey competitive, however we must also ensure consumers remain protected. This Digital Asset and Blockchain Technology Act accomplishes both of these goals and creates an infrastructure for the virtual currency industry to thrive in NJ! https://t.co/SiEEAuMz8q
— Yvonne Marie Lopez (@AswLopez) February 18, 2020
The bill is set to protect consumers from the risks and dangers digital assets pose to their investment, according to the official announcement. Lopez said,
“We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey.”
Crypto firms in New Jersey to obtain licenses
If the DAB Act passes through to law, the blockchain and cryptocurrency companies will need to register with authorities and obtain an operation license from the New Jersey Department of Banking and Insurance. Companies with licenses from other recognized states will also be allowed operation in NJ. The announcement further reads,
“In the application process, a cryptocurrency business would be required to disclose its legal name and any fictitious or trade name the applicant uses to conduct business.”
Notwithstanding, crypto companies in the state will need provide a slew of information to the financial authorities including but not pertained to,
“any license revocation, suspension, rejection or other disciplinary action taken against the applicant in another state; a list of criminal convictions, deferred prosecution agreements, and pending criminal proceedings against the applicant; and anti-money laundering and anti-terror financing policies.”
While the overall stance on regulation in crypto and blockchain world is heavily looked down upon by crypto actors, cofounder of the Blockchain Association of New Jersey, Guillermo Artiles, believes protection of investors in the field is important for the field to grow. He said,
“Those with businesses connected to these novel technologies are eager to ensure there are protections against questionable activities for the sake of the industry’s legitimacy. As a new industry, image is important.”