- Lawmakers in New Jersey propose new blockchain regulations that require crypto-business to be licensed.
- Businesses operating without the required licenses could face fines and closure.
- This latest Bill is a fresh attempt at regulating the industry after earlier attempts in the state have failed.
New Jersey lawmakers have proposed a set of blockchain regulations to regulate businesses that are blockchain or cryptocurrency based.
Lawmakers in New Jersey have proposed a broad and wide-ranging bill that would regulate businesses in the blockchain and cryptocurrency space.
The bill, entitled the “Digital Asset and Blockchain Technology Act”, requires business operating in the cryptocurrency space to be licensed by the US Department of Banking and Insurance. Those that operate without the required licenses will be liable for fines and forced to shut down.
Additionally, the Bill has provisions that are aimed at protecting consumers. It requires that businesses that encourage consumers to invest in cryptocurrencies make those consumers fully aware of the risks associated with those investments.
This is not the first time New Jersey lawmakers have sought to regulate the industry. Earlier this year, a congresswoman in the state proposed similar blockchain regulations but it did not manage to get onto the schedule of the New Jersey Senate.
The United States in general has taken quite a pro-active but stern approach when it comes to regulating the cryptocurrency industry. As early as 2014, New York had already proposed its now famous ‘BitLicense’ which sought to regulate all businesses engaged in “virtual currency activities” in the state.
It is also worth noting that for a long while, the majority of exchanges prohibit, upon registration, any potential customers that resided in the United States. These exchanges included some of the biggest such as Binance, Bitfinex and Kraken, and are only recently starting to be lifted.
Although to some in the crypto-world blockchain regulation may seem like an unnecessary hurdle in the way of business growth, it is also an indication that lawmakers are taking the industry seriously. After all, lawmakers, on the whole, do want to see industries that create jobs and sustain livelihoods grow and as the crypto-industry continues to do just that, it is important lawmakers are kept on side.