The Assembly’s Science, Innovation and Technology Committee on Monday approved four measures against virtual currencies and blockchain technology, including some that will regulate transactions involving digital assets such as cryptocurrency.
For years, some lawmakers have pushed for the introduction of regulations on virtual currencies and blockchain technologies that allow them.
This month assembly member Yvonne Lopez (D-Middlesex) re-introduced Digital Assets and Blockchain Technology Act Democrats of the Assembly said it would “ensure transparency, consumer protection and a licensing structure for both operators and consumers involved in virtual currency transactions.”
This will require people to purchase a license to engage in digital asset business with or on behalf of a New Jersey resident. People who have been convicted of fraud, embezzlement, forgery or theft in the last five years will be barred from issuing a license.
This measure was unanimously supported by the Assembly Committee. He also advanced to the Senate after the Senate Trade Committee approved it.
Victims of cryptocurrency fraud
Lopez said she was inspired to act in 2018 after several voters told her they were victims of cryptocurrency fraud. She presented her bill for the first time at the last meeting.
Later Fr. Commission of Inquiry The report notes that several people have been scammed into sending money to unknown wallets through Bitcoin stalls that look like ATMs. Some people lost tens of thousands of dollars, the report said.
“Many of us don’t even realize that [virtual currency] means, “Lopez said.” And because there are so many people who don’t understand, they fall victim to fraud. “
Lopez said she hoped the bill would be passed by June and most likely it should first go through to the Assembly’s Appropriations Committee.
Senator Nellie Poe (D-Passaic) introduced the measure to the Senate.
Both Poe and Lopez said the measure was introduced to protect consumers as new forms of currency emerged.
“Certainly, in my area, I’ve found that there are a lot of young people, especially millennials, who are very interested in that,” Pou said.
“They really think it’s a path to the future, that it’s a new currency that will really change. It is an opportunity for them to participate in this kind of financial organization … that it will grow to allow them to gain financial stability in the future or increase their finances, ”Poe added.
The Assembly’s Committee on Science, Innovation and Technology has also approved measures establishing regulatory framework for digital asset and blockchain innovation; prohibit government officials from accepting virtual currencies and NFTs (irreplaceable tokens that can be traded) as gifts; and promote blockchain integration in the New Jersey business sector.
It comes a week after President Joe Biden signed the document executive order this will require the federal government to analyze the risks and benefits of cryptocurrencies for the first time in the U.S. market.