The bill titled “Digital Asset and Blockchain Technology Act,” sponsored by Senator Nellie Pou was introduced to the Senate last Thursday. The proposed bill seeks to regulate cryptocurrency service providers under the oversight of the N.J. Department of Banking and Insurance. If passed, the law would require the issuance of a license for any entity looking to provide digital asset trading, storage, purchase, sales, exchange, borrowing/lending, or issuance services. The crypto license would become mandatory in New Jersey.
Crypto businesses would require to obtain a license.
Crypto-related entities, including businesses and individuals, will not be able to conduct any business activity unless they either have obtained a crypto license in New Jersey or have a reciprocal license in another state. Unlicensed entities operating in New Jersey could be on the hook for $500 a day until an application for a license is filed. The Senate bill follows the introduction of the same legislation to the state’s General Assembly in February and subsequent referral to the Assembly Appropriations Committee. The proposed bill’s presence in both houses would appear to signal a high likelihood that it could become law or be taken seriously.
Crypto regulations remain in a grey area in most countries.
Crypto regulations in most countries are still in a grey area as lawmakers continue to issue guidelines and propose regulations. Crypto regulations remain a hot topic in the crypto community as lawmakers around the world try to tackle the newly emerging space. Currently, crypto regulations in most countries are in a grey area. However, lawmakers and financial regulators are working to ensure decisions are made for the public interest. Since Facebook announced its cryptocurrency Libra last year, lawmakers around the world have started to take the crypto industry more seriously. Central banks in several countries are currently experimenting with their own CBDCs.
