A lawmaker New Jersey has introduced a new bill that, if passed and signed into law, would mandate that cryptocurrency businesses must obtain a license to operate in the state.

The new bill – the "Digital Asset and Blockchain Technology Act" – aims to strengthen consumer protection laws in the cryptocurrency space, according to an official announcement. The measure was introduced on Feb. 20, according to data published on LegiScan.

The legislation states that such firms would have to obtain approval from the New Jersey Department of Banking and Insurance or another state that has agreements with the New Jersey government.

To apply for the license, firms would have to disclose their legal names, their fictitious or trade names, their licensing and legal history, as well as their anti-money laundering and anti-terrorist financing policies.

Since the bill aims to shore up consumer protection, crypto companies would also have to release the terms and conditions for their consumer accounts, including a schedule of fees, their compliance status with the Federal Deposit Insurance Cooperation, and information on potential market risks.

"Throughout New Jersey, there are ATMs that dispense Bitcoins. People see and hear about it in their day to day lives, but most are not quite sure what it is," Assemblywoman Yvonne Lopez, the bill's prime sponsor, said in a statement. "We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey."