New Jersey: Laws Related to Token Sales, Blockchain, and Digital Proof

For federal requirements, please visit the USA Laws Related to Token Sales, Blockchain, and Digital Proof page.

The only blockchain or virtual currency specific regulation in New Jersey is a recently enacted statute, effective December 12, 2017, titled the Uniform Fiduciary Access to Digital Assets Act that expressly authorizes an estate’s executor under certain circumstances to manage digital assets, including virtual currencies, of a decedent. N.J.S.A. 3B: 14-61.1.

New Jersey has also issued guidance that it would conform to the federal tax treatment of virtual currency, meaning that virtual currency would be treated as intangible property and subject to sales tax. See Technical Advisory Memorandum, N.J. Division of Taxation, Convertible Virtual Currency (TAM– 2015–1(R)) (July 28, 2015).

Two New Jersey’s lawmakers proposed a 30-page bill (A4478) to put up a regulatory law for companies and individuals that engage in virtual currency. It would also provide tax breaks to companies that transact and exchange it. The bill was proposed in 2015 but is still being debated in 2018.

The bill explains that the virtual currency payment is like a transaction between two people without involving any third-party. The central bank stays uninvolved. And there is no need to keep tabs on transactions as it is with western union and Paypal.


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