New Jersey has been moving closer to implementing a crypto licensing program successfully. This licensing would bear a marked resemblance to the BitLicense in New York, as New Jersey’s neighbor is rather famous, perhaps even infamous, for boasting quite stringent regulations that crypto companies have to fulfill. Senator Nellie Pou (D-35) has sponsored the new bill and it has been named rather aptly as the ‘Digital Asset Blockchain Technology Act’. The bill was introduced to the Senate last Thursday. The purpose of the Senate Bill 3132 is to regulate all cryptocurrency service providers within the state. They would be placed under New Jersey’s Department of Banking and Insurance.
If this proposed bill does pass, it would be mandatory for any crypto firm wishing to provide trading, purchase, sales, storage exchange, lending/borrowing or even issuance services for digital currencies, to obtain a license first. Consequently, it would mean that any entity, whether it is a business or an individual, would not be permitted to conduct any sort of activity or business that related to these digital assets. Should the bill pass, the only way they will be able to do business is by owning a license that’s either issued by the state of New Jersey or have a reciprocal license issued by another state.
As expected, any entity that would be found operating without a license in New Jersey would have to deal with a hefty fine. According to the bill, the entity in question would be subjected to a daily fine of $500 until they successfully file a license application. Obviously, this figure would start adding up pretty quickly. This senate bill comes after the same legislation had been introduced in the General Assembly of New Jersey, which occurred back in February of the year.
When it comes to the General Assembly, the bill is recognized as Bill Number A2891. Subsequently, the bill had also been referred to the Assembly Appropriations Committee. As a similar bill can be found in both houses, it appears that there is a good chance for it to be passed into law, as long as New Jersey’s Governor Phil Murphy is ready to sign for it. Even if that doesn’t happen, it is a given that this bill will be taken a lot more seriously due to the large amount of traction it has managed to gain in such a short span of time.
New Jersey is certainly not the first, and neither will it be the last state, to come up with its own licensing for businesses dealing in digital assets. The world is slowly coming to understand the sheer versatility that these cryptocurrencies, as well as blockchain technology, have to offer. With their use becoming widespread, regulations are becoming a must for almost every region. Therefore, it can be expected that regulations will intensify, as their popularity and adoption intensify, because there will be a natural desire to keep these digital assets under control and properly regulated.