Assemblywoman Yvonne Lopez, a Democrat from Middlesex, is leading the charge to regulate Bitcoin (BTC) and cryptocurrency in the state of New Jersey.
Lopez is the prime sponsor of the “Digital Asset and Blockchain Technology Act” (A-2891). The bill attempts to protect consumers while also supporting the emerging asset class. It would require crypto-related businesses to acquire a license and comply with a set of standards in order to operate in the state.
“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.”
According to CoinATMRadar there are currently 169 Bitcoin ATMs in Newark, New Jersey, making it the seventh-largest crypto kiosk market in the US, trailing Los Angeles with 492, Chicago with 283, Atlanta with 267, Miami with 246, Detroit with 220 and Houston with 196.
“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, licenses would be governed by the Department of Banking and Insurance and would mandate a number of disclosures.
“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, suspension, rejection or other disciplinary action taken against the applicant in another state; a list of criminal convictions, deferred prosecution agreements, and pending criminal proceedings against the applicant; and anti-money laundering and anti-terror financing policies, among other information.”
To build more trust among consumers, Lopez says businesses would also have to disclose a schedule of related fees and changes, and be transparent about the markets by telling their clients about the volatile nature of crypto investments and the risk of losing it all.
You can check out the full announcement here.
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