New Jersey introduces bill to regulate cryptocurrency at state level

The New Jersey State Assembly is currently considering reviewing a new bill requiring cryptocurrency companies to apply for appropriate operating permits.

Congresswoman Ivan Lopez submitted the Digital Assets and Blockchain Technology Bill on February 20. This legislation will place new requirements on the virtual currency business and by requiring cryptocurrency companies to disclose their legally registered names, anti-money laundering (AML) and anti-terrorist financing (ATF) policies, as well as their status in the New Jersey Department of Banking and Insurance Licenses and legal records to create consumer-friendly protections.

Bitcoin regulatory issues in the U.S. have not been fully resolved

Although the biggest bitcoin surge occurred three years ago, New Jersey has no state regulations for cryptocurrencies. Unauthorized cryptocurrency operators must be tried at the federal level through the Department of Justice. Lopez emphasized the need to address these issues locally:

"People see and hear (Bitcoin) in their daily lives, but most people are not quite sure what it is. We must take steps to protect consumers who want to invest in cryptocurrencies, while also allowing the cryptocurrency industry to New Jersey continues to grow and expand. "

The bill also requires cryptocurrency companies to disclose terms and conditions related to their consumer accounts, which are protected by the Federal Deposit Insurance Corporation (FDIC) just like traditional bank account holders. Any applicant needs to provide a fee schedule and all information about the risks of investing in digital assets.

"With this legislation, consumers will have a better understanding of the risks involved in investing in virtual currencies."

By introducing a state-level licensing scheme, New Jersey, along with its neighbor New York State, will require cryptocurrency companies to obtain special operating licenses. In 2014, the New York financial regulator introduced BitLicense, making it one of the most difficult jurisdictions for cryptocurrency-related companies in the U.S. to operate in compliance.

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