New Jersey Legislator Introduces a New Bill to Regulate Crypto Companies

on Feb 22, 2020
  • New Jersey Legislator Yvonne Lopez filed a new bill that will require crypto companies to obtain a license in order to conduct business
  • In order to apply, companies need to reveal their legal and fictitious names, licensing history, as well as anti-money laundering and anti-terrorist financing policies
  • Currently, there are no state regulations for the crypto companies in New Jersey

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A New Jersey lawmaker introduced a new bill that, if passed, would require cryptocurrency companies to obtain a license to run their businesses in the state.

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The bill, named “Digital Asset and Blockchain Technology Act”, is sponsored by the New Jersey Assemblywoman Yvonne Lopez.

Its main purpose is to improve consumer protection laws in the crypto space, Lopez said in the official announcement. The legislation was presented on February 20th, according to the post on LegiScan.

The law states that crypto companies need to obtain permission from the New Jersey Department of Banking and Insurance, or another state that is in agreement with the New Jersey laws.

In order to get the approval, companies would have to reveal the legal and fictitious names that they use for running the business, previous licensing applications, and anti-money laundering and anti-terrorist financing policies.

Since the primary purpose of the legislation is to boost consumer protection, cryptocurrency firms would also have to publish the terms and conditions for their consumer accounts, the charging scheme, level of compliance with the Federal Deposit Insurance Corporation, as well as data on potential market risks.

Lopez said she would like to see the crypto industry grow in New Jersey, however, it should only happen in the regulatory frameworks.

“Throughout New Jersey, there are ATMs that dispense Bitcoins. People see and hear about it in their day to day lives, but most are not quite sure what it is,” said Lopez in a statement.

“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”.

Lopez strongly believes crypto companies’ activities must be monitored, as there are currently no government regulations for the crypto industry in New Jersey.

New Jersey currently accommodates many small cryptocurrency businesses that moved out from New York, as the current capital expenditure standards in the State are too high for many companies to comply with.