New Jersey Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
Proposed Laws & Regulations
n July of 2015, the New Jersey Division of Taxation advised that a “seller and/or retailer of taxable goods or services that accept convertible virtual currency as payment must determine the fair market value of the currency in US dollars as of the date of payment and charge the purchaser sales tax on the underlying transaction.”
SB 2462 introduced in April 2018, would permit corporations to use blockchain technology “for certain recordkeeping requirements.”
Enacted Laws & Regulations
Approved on 8/31/2020, AB 1906 the “Digital Currencies Jobs Creation Act, establishes a regulatory framework for digital currency businesses to operate in New Jersey and creates certain incentives for digital currency businesses to locate in the state.
AB 3817 regulates and establishes certain consumer protections concerning digital currencies. These protections include requiring digital currency businesses operating in New Jersey to register with the Department of Banking and Insurance and establishing certain consumer protection
Laws & Regulations Not Passed
NJ A4478A would have introduced registration would have been required for a person engaged in any digital currency custodial activity for more than 30 days.
S 4208 and A 5240 would have required the State of New Jersey to review and approve a blockchain-based digital payment platform to provide a safe payment system for businesses that do not have access to traditional financial services and are forced to operate in cash-only or cash-heavy environments.
A 1906 did not pass in session in January of 2020. The bill would have would have enacted the Digital Currency Jobs Creation Act, the purpose of which “is to promote innovation in the burgeoning digital currency industry, to protect consumers of digital currency services, and to create jobs in the State of New Jersey.”
|New Jersey||AB 3613
Passed Assembly 5/23/19
|Establishes New Jersey Blockchain Initiative Task Force.|
|New Jersey||AB 3768
|Permits corporations to use blockchain technology for certain recordkeeping requirements.|
|New Jersey||AB 5240||This bill requires the state of New Jersey to review and approve a viable blockchain-based, digital payment platform to provide payment services to legal and licensed businesses in this state that do not have access to traditional financial services and are forced to operate in cash-only or cash-heavy environments. The purpose of the payment platform is to provide a safe, secure, and compliant system that does not exclude these businesses from participating in digital commerce. The bill requires the payment platform to provide businesses with access to cashless transactions and to secure revenue on a one-to-one basis of virtual currency to U.S. dollars. A business shall only have access to the payment platform with approval from the state. The payment platform shall provide the ability to manage and process all business expenditures and allow all transactions to be recorded on an immutable blockchain ledger. The payment platform shall facilitate regulatory compliance, provide for audits by the state, and allow for payment of sales tax to local municipalities.|
Blockchain Information & Resources:
- Anti-Collusion | What Is Obfuscation?
- Blockchain Attacks: Is No One Safe in the World of Cryptocurrencies?
- Blockchain Technology Explained: What is Blockchain and How Does It Work?
- Digital Currency Transmission Laws and Regulations by State
- Hard and Soft Forks: A Detailed and Simplified Explanation of How Blockchains Evolved
- Legal Issues around Cryptocurrency
- Merkle Trees
- Permissioned and Permissionless Blockchains
New Jersey Cryptocurrency and Blockchain Attorneys
Is cryptocurrency legal in New Jersey? Do you have Cryptocurrency or Blockchain issues or questions? Freeman Law is an innovative thought leader in the blockchain and cryptocurrency space. Blockchain and virtual currency activities take place in a rapidly evolving regulatory landscape.
Freeman Law is dedicated to staying at the forefront as these emerging technologies continue to revolutionize social and economic activities. Contact Freeman Law to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.