A New Jersey lawmaker has proposed a new bill that, if approved and made part of the state’s law, could require digital currency companies to acquire an operational license before offering their products and services.
The new bill, called the “Digital Asset and Blockchain Technology Act,” has been designed to enhance consumer protection laws in the crypto-asset industry. This, according to a formal announcement. The bill was first introduced on February 20, 2020, according to available data on LegiScan.
The new legislation notes that digital asset companies would be required to get regulatory approval from the New Jersey Department of Banking and Insurance or another state authority that has entered agreements with the state’s government agencies.
In order to obtain the license, companies will have to share their legal names, their aliases or other trading names, their licensing and legal information, and their applicable anti-money laundering (AML) and anti-terrorist financing guidelines.
Because the new crypto bill intends to enhance consumer protection, digital currency firms would have to publish the relevant terms and conditions for their consumer accounts, such as a schedule of payable fees and charges, their current compliance or regulatory status with the Federal Deposit Insurance Cooperation, and other information regarding market risks.
Assemblywoman Yvonne Lopez, the bill’s main supporter, noted:
“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. 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.”
