After New York, New Jersey Mandates Upon Crypto-Exchanges/Businesses To Obtain Licenses

Many had thought that the US Presidential Elections will adversely affect the growth of cryptocurrencies. Some had even believed that if new administration would come, then for quite some time, no one will bother about cryptocurrencies.

Yet both these predictions turned out to be totally wrong. Firstly, pre and post-election trauma had not impacted the growth of cryptocurrencies. Instead, Bitcoin – the first ever digital currency of the world – had gone phenomenally high nearing US$ 16K price.

Secondly, a few days back New York had presented a bill for approval before its Senate regarding cryptocurrency. But now the State of New Jersey too had presented a similar bill on 9th November before its Senate for approval. The move came soon after Biden had been elected as the next President of the US.

It was told that the bill proposed a new law according to which certain requirements for cryptocurrencies have been mandated. Further details suggested that new law required obtaining of compulsory licenses by cryptocurrency exchanges that are housed in the US. The new law will be called “Digital Asset and Blockchain Technology Act” and had been tendered by Democratic Party. In addition, it was told that Nellie Pou, who is a US Senator within the Democratic Party, had drafted the proposed law.

As per the US policy of amending or approving a law, the draft bill is first presented to the State’s Senate. There are several Committees within State’s Senate covering different fields. Accordingly, the proposed law will be referred to the Committee concerned. In this case, the concerned Committee was the Commerce Committee.

The Committee will now be receiving comments from the general public on the proposed law. Based upon these comments, the decision will then be taken by the Committee to approve or disapprove the law.

In the draft bill, it has been made compulsory for all the crypto exchanges to obtain necessary licenses. Anyone who is found to be operating without the required license, will then be debarred from carrying out business activities. In addition, legal recourse will be taken against such businesses who have been found to be non-compliant of the law.

In the law a fine of US$ 500 per day had been proposed to be imposed upon such non-licensed companies/individuals.

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