The "Virtual Currency and Blockchain Regulation Act" establishes a regulatory framework for digital assets in New Jersey, defining key terms such as "open blockchain token," "developer," and "facilitator." The bill mandates that developers and sellers of open blockchain tokens file a notice of intent with the Department of Banking and Insurance, accompanied by a $1,000 fee, and outlines penalties for non-compliance. It also allows banks to provide custodial services for digital assets, requiring them to notify the Commissioner of Banking and Insurance 60 days prior to offering such services. The act amends existing laws to incorporate these definitions and provisions, enhancing the regulatory landscape for digital assets.

Additionally, the bill expands the definition of "targeted industry" to include the virtual currency industry and introduces tax incentives for virtual currency servicers, allowing them to receive an additional $5,000 tax credit for each new or retained full-time job created annually. It also amends the definition of "electronic funds transfer" to include virtual currency, enabling its use for state tax payments. The legislation aims to modernize New Jersey's corporate and tax laws, promote job growth in the virtual currency sector, and integrate blockchain technology into the state's regulatory framework.

Statutes affected:
Introduced: 17:15C-2, 17:15C-3, 34:1B-243, 34:1B-246, 54:48-4.2