New Jersey state legislature is now starting to look into a bill that would mean cryptocurrency companies will need to get a license in order to operate.

Yvonne Lopez proposed the new Digital Asset and Blockchain Technology act last week on the 20th of February.

New Jersey state legislature is now starting to look into a bill that would mean cryptocurrency companies will need to get a license in order to operate.

Yvonne Lopez, a member of the legislative assembly proposed the new Digital Asset and Blockchain Technology act last week on the 20th of February. Such legislation would establish new requirements for cryptocurrency companies by creating a consumer-friendly protection system that would need the company is the firms to disclose their legally registered names and policies on anti-money laundering and terrorist financing.

The latest surge in the cryptocurrency happened three years ago in 2017 with bitcoin reaching $20,000 in December of last year. During this time, there were no state regulations that surrounded digital assets in New Jersey. Unlicensed crypto operators needed to be tried on a federal level by the Department of Justice. Lopez further added:

“People see and hear about [Bitcoin] in their day-to-day lives, but most are not quite sure what it is. 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.”

Such a bill also requires cryptocurrency firms to reveal their terms for customer accounts. Anyone applying would need to provide a schedule of fees and any further data in regards to the risks associated with cryptos such as bitcoin.

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

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!