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A new “crypto” law in California comes into effect on J that will impose licensing requirements on broad categories of digital financial asset business activity. Gov. Gavin Newsom (D) on Friday signed into law a measure that would regulate California’s cryptocurrency industry, home to nearly a quarter of the blockchain The California State Legislature has passed a new crypto regulation that includes wide-ranging provisions on licensing and stablecoin issuance. Under the Digital Assets Financial Law, any The California crypto bill, formally known as the Digital Financial Assets Law, targets entities engaged in digital asset activities within the state, including businesses Engaging in “digital financial business activity” with or on behalf of a California resident (broadly including any entity with a place of business in California) may On Friday, October 14, Newsom declared that the bill, titled the Digital Financial Assets Law, will make it mandatory for both individuals and firms to obtain a 1 de sept. de 2025 Per a recent report by CoinGecko, internet users from California accounted for 43% of all Bitcoin and Ethereum web traffic searches on the crypto tracking website. The Law is California’s first comprehensive framework for regulating digital assets as well as the first state-level statutory crypto licensing framework in the United States

California Passes Landmark Crypto Licensing Law: What Bitcoin and Ethereum Enthusiasts Need to Know

California has enacted a groundbreaking new law impacting individuals and businesses involved with Bitcoin, Ethereum, and other digital assets. Governor Gavin Newsom signed the Digital Financial Assets Law (formally known as Assembly Bill 39) on Friday, October 14, setting the stage for a regulated cryptocurrency industry in the state.

This law, coming into effect on January 1, 2025, marks California’s first comprehensive framework for regulating digital assets and the first state-level statutory crypto licensing framework in the United States. It imposes licensing requirements on broad categories of digital financial asset business activity.

Who is Affected by the California Crypto Licensing Law?

The Digital Financial Assets Law targets entities engaged in "digital financial business activity" within California. This includes businesses engaging in digital financial business activity with or on behalf of a California resident (broadly including any entity with a place of business in California). The California State Legislature has passed a new crypto regulation that includes wide-ranging provisions on licensing and stablecoin issuance.

Key Provisions of the New Crypto Law

Under the Digital Assets Financial Law, any entity dealing with digital assets within California will need to obtain a license. The law covers a broad range of activities related to digital assets, including but not limited to: cryptocurrency exchanges, custody services, and stablecoin issuance.

Why California? A Hub for Bitcoin and Ethereum Interest

California is a major player in the cryptocurrency space. Per a recent report by CoinGecko, internet users from California accounted for 43% of all Bitcoin and Ethereum web traffic searches on the crypto tracking website. This high level of interest underscores the importance of this new regulatory framework.

What Does This Mean for Bitcoin and Ethereum Users?

The California crypto bill, formally known as the Digital Financial Assets Law, aims to provide greater consumer protection and transparency in the digital asset market. By requiring licensing, the law seeks to ensure that businesses operating with Bitcoin, Ethereum, and other cryptocurrencies meet specific standards and regulations. This new “crypto” law in California comes into effect on January 1, 2025 that will impose licensing requirements on broad categories of digital financial asset business activity.

Stay tuned for further updates and guidance on how to comply with the Digital Financial Assets Law. Consult with legal professionals to understand the full implications of this law for your specific situation. Engaging in “digital financial business activity” with or on behalf of a California resident may require you to obtain a license under this new regulation.

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