New Jersey Is Regulating Cryptocurrencies At State Level

The regulation crypto exchange news that we have been covering are nothing compared to a recent decision by an actual state in the United States. We are referring to the state of New Jersey which is now considering a new bill that would require cryptocurrency businesses to obtain a proper license to operate.

As the cryptonews first hinted, the assemblywoman Yvonne Lopez proposed the Digital Asset and Blockchain Technology Act on Feb. 20. as part of a legislation which would establish new requirements for virtual currency businesses and create consumer-friendly protections by requiring crypto firms to disclose their legally registered names, Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) policies, as well as their licensing and legal history to the State of New Jersey and the Department of Banking and Insurance.

Even though the largest surge was the Bitcoin news showing how BTC got to $20,000 in December 2017, there were no state regulations surrounding cryptocurrency in New Jersey at the time. Unlicensed crypto operators had to be tried on a federal level then through the Department of Justice. This is why Lopez highlighted the need to address the issues today and said:

“People see and hear about [Bitcoin] in their day-to-day lives, but most are not quite sure what it is. 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.”

The bill apparently requires crypto companies to disclose their terms and conditions for consumer accounts. As such, they will be protected by the Federal Deposit Insurance Cooperation (FDIC) as are traditional bank account holders.

The US crypto regulation news also show that anyone applying would need to provide a schedule of fees and any information regarding the risks of investing in digital assets.

“With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency.”

This is what is new in the US crypto regulation news. What is important now is that with the introduction of a state-level licensing scheme, New Jersey would join its neighbor New York in requiring crypto firms to obtain special permission to operate – something that has been known as the BitLicense which the regulators in New York introduced in 2014.