A New Jersey lawmaker has introduced a bill seeking to mandate licensing for crypto businesses operating in the state.
Dubbed the Digital Asset and Blockchain Technology Act, the bill has been introduced as the state has no clear regulations for the growing industry, per the official announcement.
The bill is seeking the mandatory registration of all crypto businesses with the New Jersey Department of Banking and Insurance or a similar body in any other state that has ties with the New Jersey government on the matter.
If passed, it will also require crypto companies to disclose its legal name and any fictitious or trade name the applicant uses to conduct business, along with the details of anti-money laundering and counter-terror financing measures it is taking.
The companies also have to disclose a list of any license revocation, suspension, rejection, or other disciplinary action taken against the applicant in another state, as well as a list of criminal convictions, deferred prosecution agreements, and pending criminal proceedings.
Rising consumer-centric crypto businesses
“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,” Assemblywoman Yvonne 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.”
Lopez is the lead sponsor of the introduced bill in the state assembly.
The bill requires cryptocurrency businesses to disclose the terms and conditions of a consumer’s account at the time the consumer contracts for service, along with information on the schedule of fees and charges.
The neighboring state of New York is known for the toughest crypto license in the country – BitLicense – which is mandatory for every crypto company offering services to the residents of the state. Many major businesses even fled from the state, calling it too harsh for the industry.