TRENTON, N.J.—The Assembly Science, Innovation and Technology Committee has approved a bill (A-2891) known as the Digital Asset and Blockchain Technology Act to regulate the growing cryptocurrency industry in New Jersey, with the goal to spur innovation and create a competitive economy.
The measure aims to provide transparency, consumer protections and a licensing structure for both operators and consumers engaging in virtual currency transactions in New Jersey. The bill is sponsored by Assembly Democrats Yvonne Lopez, Andrew Zwicker and Joe Danielsen, Insider New Jersey reported.
“While many people see and hear about Bitcoin, few know how the virtual currency industry works. Many people have invested large sums of money without knowing the cryptocurrency market can be volatile and can subsequently lead to irreparable financial harm,” said Lopez. “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.”
Under the bill, digital asset businesses must be licensed by Department of Banking and Insurance in order to operate in New Jersey, or be licensed in another state in which New Jersey has a reciprocity agreement. In the application process, a cryptocurrency business would be required to disclose its legal name and any fictitious or trade name the applicant uses to conduct business. It also must provide a list of any license revocation or suspension taken against the applicant in another state, federal or state investigations and litigation involving the business, among other information, Insider New Jersey explained.
‘Up and Down’
“The value of Bitcoin goes up and down; it’s been as high as $20,000 and as low as $16,” said Zwicker. “With this in mind, it’s important that we instill protections for consumers and ensure the Department of Banking and Insurance has the tools it needs to take action if fraudulent activity ever occurs.”