NJ Bill Prohibit Firms Holding Virtual Currency From Lending Out Tokens

new jersey crypto

According to reports, a New Jersey proposed law will make it an illegal activity for firms holding cryptocurrency on clients behalf to lend tokens in its custody out. This move by the New Jersey legislation will see cryptocurrency exchange activities between firms and other entities become a crime under state law.

According to the bill submitted to the General Assembly of New Jersey by Assemblymember Yvonne Lopez. The new law will prohibit cryptocurrency exchange firms that hold virtual coins on behalf of customers from lending out such funds in their custody to other entities.

SEE ALSO:   Bitcoin price predictions 2018: Bitcoin will reach $25,000 in 2018 and $125,000 by 2022 - Bitcoin Price today - Mon Oct 15

AB3817 Bill

AB3817 will also require cryptocurrency holding firms to obtain permission from their New Jersey resident-customers before selling, assigning or transferring, any digital assets in their possession belonging to those clients. In addition to the restriction on lending provided in the proposed bill, if passed into law the new law will also ban virtual currency holding companies from pledging and hypocathering crypto under their custodianship, whether it is with the explicit permission or without a request from the rightful owners of those tokens.

What more does this soon to be law propose? The proposed legislation, submitted by Assemblywoman Yvonne Lopez will also require the following:

SEE ALSO:   Litecoin price today; Litecoin predictions 2018: Is there a potential for Litecoin price to reach Bitcoin price? - Mon Oct 15

“Any partnership, individual, corporation, trust, association, or other business entity or combination” that is currently “engaging in the digital currency business” to ensure that they register with the New Jersey’s Department of Banking and Insurance, as long as the activity involves “any individual that resides, or is located, or currently conducting their business in New Jersey.”

As at April 5, reports circulated across media houses in New Jersey that the bill was submitted and referred to the committee of Science, Innovation and Technology Committee of the State Assembly. More information on the progress of this bill will be revealed in due time.

SEE ALSO:   Ripple can be the dark horse cryptocurrency of 2018: Ripple Price Predictions - XRP Price Today - Mon Oct 15


LEAVE A REPLY

Please enter your comment!
Please enter your name here

six + 9 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.