The state of New Jersey has moved closer to a new bill that facilitates the implementation of the state-level regulatory framework for cryptocurrency firms in the state. After the Senate bill proposed by Democratic Party senator Nellie Pou, the state of New Jersey has moved closer to implementing a cryptocurrency license. 

The new proposed bill (S3132) is known as the "Digital Asset and Blockchain Technology Act" will regulate crypto service providers under the department of banking and insurance, requiring them to have a license for digital asset trading, purchase, sales, storage, borrowing/lending, exchange, or issuance services. 

The bill states that a person cannot engage in a digital asset business activity only if the company is licensed in the State or has filed a pending license or if the company has a license in another state to conduct digital asset business activity with a reciprocity agreement. 

If someone in the state is found dealing with cryptocurrencies without a license, they could be penalized $500 a day until an application for a license is filed. 

The recent bill shows that New Jersey is following the footsteps of neighboring New York which has embraced a similar regulatory structure known as BitLicense since 2015. 

“The bill provides that a person or a business entity engaged in a digital asset business activity, or hold itself out as being able to engage in a virtual asset business activity, with or on behalf of a resident unless the person or the business is licensed in the state of New Jersey by the Department of Banking and Insurance, or has filed a pending license with the department, or licensed in another state to conduct virtual currency business activity by a state with which this state has a reciprocity agreement,”?the official statement mentioned in the bill. 

As lawmakers around the world have started to take the crypto industry more seriously, regulations are being introduced to ensure decisions are made for the public interest. Regardless of this, guidelines and regulations implemented in most countries are still in grey areas.