Two state lawmakers have filed a law in the New Jersey House of Representatives preventing government officials from receiving bribes in cryptocurrency.
Legislature members Christopher Tully and Ellen Park have submitted a bill to the New Jersey General Assembly for approval that will prevent government officials from accepting irreplaceable tokens (NFT) or other digital currency as gifts. Co-author Christopher Tully said the law was aimed at fighting corruption through the use of cryptocurrencies.
“It is important that we adapt to the current environment and recognize cryptocurrency and blockchain technologies. This proactive legislation ensures that our ethics laws are also adapted so that we can continue to require civil servants to adhere to high standards, ”Tully said.
On Monday, the committee approved a separate bill that would include a basic framework for the crypto industry in New Jersey. Under the new rules, cryptocurrency exchange operators in New Jersey will need to obtain a license from the state’s Banking and Insurance Department to engage in “digital asset operations with or on behalf of residents.” According to the law, any cryptocurrency exchange operator convicted of embezzlement, forgery, fraud or theft in the last five years will not be able to obtain a license for cryptocurrency activities.
Potential licensees will need to disclose a long list of information, including audited financial statements and how they will monitor compliance with anti-money laundering and anti-terrorist financing laws. According to the Science and Innovation Committee, the bill aims to increase transparency and consumer protection for New Jersey residents in the crypto space.
“New Jersey is a hub of innovation, and with this bill we can lead the country in ensuring sound industry regulation,” said legislator Yvonne Lopez, who co-authored the bill.
Lopez added that while cryptocurrency is “beneficial, there is still a great risk for users to use it.”
