New Jersey lawmakers plan bill for blockchain technology and digital assets

New Jersey lawmakers are reviewing a bill regarding regulations for blockchain-powered businesses and companies involved in digital assets such as bitcoin. Implemented by Dtate Senate Democrat, Nellie Pou, the Digital Asset and Blockchain Technology Act sets rigorous licensing criteria for companies in the blockchain and cryptocurrency space.

The bill proposes that digital assets businesses would need to obtain a license from the Department of Banking and Insurance. Crypto entities will also be permitted to run with licenses from states with New Jersey's reciprocity arrangement. Those whose commit violations will face a fine of up to $500 per day. In addition, the proposed legislation requires additional rules to protect the interests of customers in the sector of crypto firms. For example, the risks involved in investing in Bitcoin and other cryptocurrencies have to be reported.

From the bill,

“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, Yvonne Lopez, a member of the New Jersey Assembly, introduced a similar idea for legislation to protect customers and to create standards for companies in the crypto industry.