The New Jersey state legislature is reportedly looking to come up with a new law, to establish a requirement for crypto firms, to secure a legally authorize license before operating in the region.
Specifically, the law – dubbed “the Digital Asset and Blockchain Technology Act” – was initially proposed by Assemblywoman Yvonne Lopez.
According to it, all crypto-related firms are demanded to submit their legally registered names, Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) policies, as an attempt to form consumer-friendly protections.
Such businesses also need to provide the State of New Jersey’s Department of Banking and Insurance their licensing documents and legal history.
The new bill further demand enhanced transparency from crypto companies, via a requiring them to reveal the terms and conditions for consumer accounts, along with an announcement of protection from the Federal Deposit Insurance Cooperation (FDIC), as are traditional bank account holders.
Applicants have to possess a schedule of fees, and any information regarding the risks of investing in digital assets.
“With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency.”