Lawmakers in the state of New Jersey are analyzing a bill that would regulate businesses involved in blockchain technology and digital assets, such as the flagship cryptocurrency Bitcoin (BTC).
The Digital Asset and Blockchain Technology Act, introduced by state Senate Democrat Nellie Pou, proposes strict licensing requirements for businesses in the crypto industry.
The bill requires that digital assets businesses be licensed by the Department of Banking and Insurance. Crypto firms with license from states that have reciprocity agreement with New Jersey will also be allowed to operate. Violators will be liable for a fine of $500 per day.
The proposed law also mandates new regulations for crypto businesses to protect the interest of consumers in the industry.
For instance, they will have to disclose the risks involved in investing in Bitcoin and other cryptocurrencies.
“All disclosures required by this act shall be displayed and individually agreed to by a consumer before any digital asset transaction at an electronic kiosk.
Any fee to be charged shall be displayed and individually agreed to by a consumer before any digital asset transaction or digital asset balance inquiry at an electronic kiosk.”
Earlier this year, New Jersey Assemblywoman Yvonne Lopez proposed similar legislation to protect consumers and establish requirements for businesses in the crypto space.
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