Officially introduced on Feb 20, a New Jersey lawmaker is stepping up to bring the crypto-regulatory framework. The bill demands crypto firms to obtain a business license and attempts to increase the awareness of consumer protection in the digital asset space.
The bill regulating crypto in New Jersey was proposed by Yvonne Lopez, referring to the New Jersey Assembly Financial Institutions and Insurance Committee. She stressed that despite the volatile price of Bitcoin, the industry is constantly growing in New Jersey. However, she continued stating that despite steady growth, ‘there are no state regulations for the growing industry”.
Interestingly, she pointed out the saga of Bitcoin ATMs which she claims are not properly informed to people in the region. Henceforth, she emphasized the effort to protect consumer interest as well as to encourage industry to expand in New Jersey.
“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 Assemblywoman Yvonne Lopez (D-Middlesex).
As per the same document, Lopez is the prime sponsor of new legislation, “Digital Asset and Blockchain Technology Act” (A-2891). Noticeably, this act promotes consumer-friendly protections as well as create licensure requirements for crypto business in New Jersey.
Concerning the new bill, she highlights that the Department of Banking and Insurance will spearhead the licensing procedure for the crypto business. The license is essential to operate a business in the region. She also notes that the businesses can be “licensed in another state in which New Jersey has a reciprocity agreement”
While applying for a license, the department expects business to disclose several details including; the legal name of the business, terms conditions applicable for consumer account, list of any license revocation, suspension, rejection or other legal action against the business/applicant in other states. However, the document also notes how businesses from New York state choose New Jersey as the preferred location to run their crypt business due to NY’s capital expenditure requirements for the crypto industry.
“If we want to keep our economy innovative and competitive, we must welcome emerging industries to do business here in New Jersey. It’s also important that we establish fair and reasonable requirements for this new sector that will protect businesses and consumers alike,” said Lopez.
Echoing the similar concern, Guillermo Artiles, cofounder of the Blockchain Association of New Jersey, says;
“Everyone agrees that the industry has an exciting future — one right here in New Jersey.”
She concluded that, with the requirements of new legislation in place, consumers will be better informed of the risks involved when investing in virtual currency,”