Global acceptance of Digital assets is rising as California enacts a regulatory framework to restrict companies after July 1st 2025 unless licensed.

Cryptocurrency companies in California have been able to operate in the state without a license. This is set to change as the Digital Financial Assets Law (DFAL) is introduced, just recently signed into law by Governor Newsom.

The new law is one of the most stringent digital currency licensing laws across the globe. It involves a wide set of provisions including licensing, disclosures, customer protections, stablecoins, exchange-specific sections, and strict enforcement.

License Requirements

Starting at the beginning of July 2025, entities in the industry are required to possess a license or have submitted a licensing application to operate legally in California. The requirements are significant and extensive. The legislation considers customer asset security, anti-money laundering, anti-fraud, information security, and general compliance as part of the process to obtain the license.