California Governor Gavin Newsom approved a cryptocurrency bill that imposes stricter regulations on companies that conduct cryptocurrency operations, starting in July 2025.
in a statement Posted on October 13, Newsom stated that the bill, titled the Digital Financial Assets Act, will make it mandatory for both individuals and companies to obtain a license from the Department of Financial Protection and Innovation (DFPI) to engage in asset trading activities. digital.
In legislative documents, appointment California money transmission laws, which prohibit banking and wire transfer services from operating without a license granted by the DFPI commissioner.
However, the new cryptocurrency bill will allow the DFPI to impose strict auditing requirements on cryptocurrency companies and force them to comply with registration requirements. The statement noted:
โ[This bill] would require a licensee to maintain [...] for 5 years after the date of activity, certain records, including a general ledger maintained at least monthly that lists all assets, liabilities, capital, income and expenses of the licensee.โ
It further clarifies that companies that do not comply with the bill will face coercive measures.
Around this time in 2022, Newsom refused to sign a similar bill which aimed to establish a regulatory and licensing framework for digital assets in California.
Although the bill passed the California State Assembly without opposition, Newsom said he would return it โwithout my signature.โ
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Newsom suggested that the bill was not flexible enough to keep up with rapidly changing crypto trends.
At the time, Newson stated that he was waiting for federal regulations to take effect before working with the legislature to establish crypto licensing initiatives.
Meanwhile, Cointelegraph recently reported that the United States is exploring the possibility to apply the Electronic Fund Transfer Law to cryptocurrencies as a measure to combat fraudulent transfers.
In a recent speech, Rohit Chopra, director of the Consumer Financial Protection Bureau, expressed his intention to grant authorization to "reduce the harm from errors, hacks, and unauthorized transfers."
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