Crypto and Blockchain Businesses in New Jersey Must Obtain Licenses if This Bill Passes
The “Digital Asset and Blockchain Technology Act” from the State of New Jersey is now before the Senate under Bill 3132 sponsored by Senator Nellie Pou.
Similarities with New York’s Bitlicense
If passed, the act shall introduce a raft of changes similar to the stringent Bitlicense stipulations of New York. Specifically, the bill requires digital asset handlers and facilitators to obtain licensing under the supervision of the New Jersey Department of Banking and Insurance.
Entities looking to delve into cryptocurrency and digital asset service provision must obtain approving licenses from New Jersey regulators or other states with whom they have a reciprocity agreement.
Companies or individuals who fail to comply with this regulation are liable for a penalty of $500 per day “from the first day the department issues a notice of failure to apply for a license until a license application is filed with the department.”
State of Affairs in the United States
Overly, federal agencies and lawmakers are aware of the underlying technology, even terming it as an essential framework critical for the country’s future. However, rule-making has been lagging despite their assertion that the United States must maintain the lead in the technology’s development.
Blockchain and crypto laws in the United States remain fuzzy and disparate since different states interpret what digital assets are. While the main regulator, the Securities and Exchange Commission (SEC) has been cracking the whip on several ICO projects and ramps it deems to be operating unlawfully or selling securities, the nation wholly remains crypto-friendly.
Last year, Congress presented 22 different bills touching on cryptocurrency and blockchain policy that would be discussed this year.
The bills, broadly split into three, touches on ways of preventing the use of cryptocurrencies in promoting illegal activities, laws that promote the integration of crypto and blockchain into existing frameworks, and ways through which the government can leverage distributed ledger technology.
Amid this development, the introduction of the Token Taxonomy Act excluding cryptocurrencies from being considered securities was a massive boost for the sphere struggling for legitimacy.
In August, as BTCManager reported, the state of Hawaii approved 12 cryptocurrency exchanges to pilot its crypto regulatory sandbox. In the deal, they will continue to operate without obtaining the Money Transmitter License for two years.