New Jersey Moves Closer to Crypto License With Introduction of Senate Bill

New Jersey has inched closer to implementing a cryptocurrency license similar to the “BitLicense” mandated in neighboring New York since 2015.

• Sponsored by Sen. Nellie Pou (D.-35), a bill known as the "Digital Asset and Blockchain Technology Act" was introduced to the state Senate last Thursday.
• Senate bill 3132 seeks to regulate cryptocurrency service providers under the oversight of the N.J. Department of Banking and Insurance.
• The proposed law would require the issuance of a license for any entity looking to provide digital asset trading, storage, purchase, sales, exchange, borrowing/lending or issuance services.
• Those entities, including businesses and individuals, will not be able to conduct any business activity unless they have either obtained a license in New Jersey or have a reciprocal license in another state.
• Unlicensed entities operating in New Jersey could be on the hook for $500 a day until an application for a license is filed.
• The senate bill follows the introduction of same legislation to the state's General Assembly in February (where it's bill number A2891) and subsequent referral to the Assembly Appropriations Committee.
• A presence in both houses would appear to signal a high likelihood the bill could become law if signed by Gov. Phil Murphy, or at least is being taken seriously.

See also: New Jersey Lawmaker Wants to Create a Crypto License