To ensure customers from the threats digital assets present to their investment, a New Jersey legislator has initiated a bill to organize the cryptocurrency and digital assets industry.
The bill states that every virtual asset company must collect and retain their operation license with the administrations in the state.
The bill, introduced by New Jersey’s Assemblywoman, Yvonne Lopez, is called “Digital Assets and Blockchain Act” according to a report that was released on February 20.
Lopez noted that critical steps must be carried out to ensure consumers that want to invest in cryptocurrency, while also enabling the crypto space to keep developing and expanding in New Jersey.
The bill will be submitted to the New Jersey Assembly Financial Institutions and Insurance Committee for examination.
If the bill gets enacted into the constitution, then crypto firms in the state will be expected to collect operating permissions from financial administrations.
About the operation licenses
In addition to the collection of operation licenses, companies with licenses from other well-known states will be permitted to run in New Jersey.
In the course of the application procedure, a crypto business will be expected to reveal its legal name, including any imagined name the applicant uses to operate the business.
But nevertheless, crypto companies in the state will be expected to give information to the financial authorities about any license suspension or refusal.
Co-founder of the Blockchain Association of New Jersey, Guillermo Artiles, acknowledges that the safety of investors in the crypto space is crucial for the space to thrive.
He added that those with companies linked to modern technologies are anxious to make sure there are immunities against dubious acts for the sake of the industry’s legality because as a new industry, the impression is vital.