New Jersey is anticipating a new Senate bill inching it closer to introducing an all-new state-level licensing framework for Crypto firms.
Those which even applied for a license will be eligible under the new norms.
The new senate bill
Looks like Cryptocurrency is finally seeing the light of the day with acceptance levels increase coinciding with the Bitcoin bull rally. The New Jersey Senate is also gearing up for the same and reports are that it is considering launching a new bill surrounding the licensing framework for cryptocurrency. The senate might go in for the creation of a new mandatory licensing framework for all the cryptocurrency frameworks that operate within the state itself.
The new Senate bill that was introduced on November 5 called the “Digital Asset and Blockchain Technology Act,” has been the effort of the Democratic Party Senator for New Jersey’s 35th Legislative District, Nellie Pou. As of now, the S3132 referral is forthcoming to the Senate Commerce Committee. The Senate bill follows what can be seen as the introduction of the same legislation. This can be seen similar to New Jersey’s General Assembly earlier this year and its later referral to the Assembly Appropriations Committee.
What does the bill entail?
The bill says that all the digital asset businesses if not should already be licensed. If not licensed they should at least have filed a license application if they are to conduct business activities legally, within the perimeters of the law, or on behalf of a resident of the state. There is another flexible option here for digital asset businesses. Those businesses which are already registered with licenses in another state are also deemed legal in New Jersey. The states should be those with which New Jersey has a reciprocity agreement.
As per the New Jersey license for crypto firms, it will mandate activities which will include issuing digital assets that offer digital exchange services, borrowing, and lending digital assets, and also maintaining custody of digital assets. The licensing requirements exclude those entities which are regulated custodians in the country like banks, broker-dealers, and trusts.
The penalties for not having a license can be exorbitant. Those individuals or entities which conduct activities without a license or a pending license would be liable to pay a penalty of $500 per day. New York, the neighboring zone of New Jersey is infamous for its controversial licensing framework for crypto businesses. New York’s license is all set to be updated right after 5 years of its existence which is an important development.
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