The New Jersey state legislature is now considering a new bill that would require cryptocurrency businesses to obtain a proper license to operate.

Assemblywoman Yvonne Lopez proposed the Digital Nugget and Blockchain Technology Act on February. xx. The legislation would establish new requirements for virtual currency businesses and create consumer-friendly protections by requiring crypto firms to disembalm their legally registered names, Anti-Coin Laundering (AML) and Anti-Terrorist Financing (ATF) policies, and their licensing and legal history to the Country of New Bailiwick of jersey's Department of Banking and Insurance.

Bitcoin regulation in the United States hasn't been fully addressed

Though the largest Bitcoin surge happened over three years agone, there were no state regulations surrounding cryptocurrency in New Jersey. Unlicensed crypto operators had to be tried on a federal level through the Section of Justice. Lopez highlighted the need to address these issues locally:

"People see and hear nigh [Bitcoin] in their day-to-solar day lives, but most are not quite certain what it is. Nosotros must have steps to protect consumers looking to invest in cryptocurrency, while also assuasive the sector to continue to develop and expand in New Jersey."

The bill likewise requires crypto companies to disclose their terms and weather for consumer accounts and their they are protected by the Federal Deposit Insurance Cooperation (FDIC), every bit are traditional bank account holders. Anyone applying would need to provide a schedule of fees, and any information regarding the risks of investing in digital avails.

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

By introducing a state-level licensing scheme, New Jersey would join its neighbor New York in requiring cryptocurrency firms to obtain special permission to operate. In 2022, New York financial regulators introduced the BitLicense, making it i of the toughest jurisdictions in the union for cryptocurrency-related firms to operate.