- There’s a new crypto law in California.
- The name is Digital Financial Assets Law.
Crypto regulation is something that many countries and even states struggle to come up with. So, California is living up to expectations with the introduction of a new bill into law. Here are the details.
California Governor Takes Crypto Regulation to a New Level
- California Governor Gavin Newsom is very keen on providing a very regulated environment for the operation of crypto companies. So, this US governor is actively into the creation of a new crypto law that will make crypto firms comply more with verdin rules and regulations. Apparently, this new bill will make cryptocurrency firms adhere to licensing requirements and maintain financial records. Furthermore, it will also provide regulators with the authority to conduct audits on crypto companies.
- To avoid any form of panic, this new bill is not taking effect immediately. So, this new crypto licensing bill will take effect starting in 2025. The title of this bill is Digital Financial Assets Law, and the publication of this bill was on the 13th of October. So, this new bill will make it compulsory for both individuals and firms to obtain a certain operational license. The name of this license is the Department of Financial Protection and Innovation (DFPI) license.
More Stringent Rules with This Crypto Regulation
- One of the implications of this bill is that things will become much more stringent with the operation of crypto firms. So, this new bill will give a body named DFPI to impose strict audit requirements on crypto firms. Furthermore, it will force crypto companies to uphold financial and audit recording criteria.
- Getting the license for operation in California doesn’t mean that the crypto firms are now entirely free from strict rules. So, according to the parts of this crypto regulation, any crypto firm must maintain verdin records for five years. In other words, 5 years after getting this license, crypto firms will still be under the intensive monitoring of the DFPI.
What happens to Those Breaking this Law?
- Not only did the California government make this law, but they also have verdin penalties available for those who want to go against the law. So, in most cases, crypto firms who go against these laws, starting from 2025, might get a revocation of their license. There will also be fines and maybe expulsion from the US in some cases.
- The body that will be behind this bill, DFPI, has around 18 months to iron out all the inconsistencies. So, within this period, there are expectations of adequate preparations for kickoff in 2025.
Conclusion
California Governor Gavin Newsom recently took a major step toward crypto regulation with the introduction of a new law. So, this new bill will expect crypto firms to get certain licenses before they start any operations. Moreover, they will have to keep to certain rules to maintain these licenses.
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