New Jersey crypto bill recommends mandatory business license for crypto firms

New Jersey crypto bill recommends mandatory business license for crypto firms

A proposed New Jersey crypto bill aims to implement mandatory business licenses for firms dealing in cryptocurrency operations. New Jersey has so far remained a crypto-friendly destination. However, a lawmaker from New Jersey state has tabled a bill that will require all the crypto firms operating within the state’s jurisdiction to apply for a business license.

The proposed New Jersey crypto bill wishes to control the booming local digital currency industry with adequate supervision and regulations. As more states exercise tighter oversight over cryptocurrency operations, New Jersey doesn’t want to be seen as a laggard. The proposed law would require virtual currency entities to secure a license from the state’s financial regulator.

New Jersey crypto bill aims to regulate the state’s crypto scene

The proposed bill titled ‘Digital Asset and Blockchain Technology Act’ is an act to bring in more transparency in the state’s virtual currency realm and strengthen the state’s consumer protection regulations.

Cryptocurrency businesses would have to share extensive details. They will have to dole out their legal name, business purpose, services, prices of services, and operational history to the Federal Deposit Insurance Cooperation. The firms will also have to share the anti-money laundering policy with the authorities. Since the bill is related to consumer rights transparency, the firms will also have to share details about the terms related to user’s accounts, their types, fees, auxiliary charges if any, compliance status, and more.

The United States crypto regulations are maturing every day

Assemblywoman Yvonne Lopez commented that ATMs across the state are dispensing Bitcoins to citizens, and most don’t know what they are. The proposed New Jersey crypto bill would help protect consumers against virtual currency frauds and also bring regulatory compliance into the state’s crypto sector.

States across the U.S. are actively enacting laws to regulate crypto. Both blockchain and crypto are being brought under the purview of the authorities. While some may view this development as suffocating, it is also a sign of a maturing crypto realm that is acknowledged by the regulatory bodies.

Featured Image by Pixabay

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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