The only exception to this is if such businesses have obtained a ‘reciprocal’ license from another state that is deemed appropriate for authorization to operate cryptocurrency services in the state of New Jersey.
The state of New Jersey is inching close to enacting a law that would start issuing license for cryptocurrency operators. This would happen if the state’s senate passes a bill recently introduced to it by Senator Nellie Pou (D-35).
The Digital Asset and Blockchain Technology Act was introduced in the upper chamber of the house on Thursday. Its objective is to give the New Jersey Department of Banking and Insurance and oversight authority over operations of cryptocurrency providers in the state. Bill 3132 of the Senate of New Jersey would effectively regulate the operations of cryptocurrency vendors in the state.
The law when enacted would mandate the agency to ensure that any providers of digital trading servicing related to cryptocurrency are licensed. Also covered by the proposed law aside from trading services are lending, exchange, storage, borrowing and other cryptocurrency-related services.
The law proposes a daily fine of $500 for any entities that operate in the state without proper licensing. The only exception to this is if such businesses have obtained a ‘reciprocal’ license from another state that is deemed appropriate for authorization to operate cryptocurrency services in the state of New Jersey.
The daily fine would be in place for any entities operating without relevant authorization until they file an application for the license, according to the proposed act.
The bill is similar to bill number A2891 which was introduced to the state’s General Assembly in February. The bill has already been referred to the Appropriation Committee of the Assembly for action.
That both houses have an interest in the enactment of a law regulating the operation of cryptocurrency and blockchain assets is an indication that such would soon become law in the state. It also shows seriousness among the legislative bodies to ensure that digital assets are regulated.
The New York State Department of Financial Services (NYSDFS) has already started licensing cryptocurrency businesses. The stringent BitLicense law which made it tough for operators to meet its demands was scaled down last June. This is five years after the law was enacted.
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Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.