Questions tagged [regulated in california]

GangnamGlitz Fri Jul 12 2024 | 7 answers 1331

In California, the regulation of Bitcoin and cryptocurrency exchanges has taken a significant turn towards tighter oversight in recent years. With the passage of the "Digital Financial Asset Law" in 2025, the state has mandated that all entities engaging in digital asset transactions must obtain a license from the Department of Financial Protection and Innovation. This license requirement ensures that only compliant and well-regulated exchanges operate in the state, reducing the risk of fraud and protecting consumer interests. Additionally, the law imposes strict record-keeping requirements, mandating that licensees preserve financial records for up to five years. This enhanced transparency enables regulators to conduct audits and ensure compliance with state laws. Overall, California's approach to regulating Bitcoin and cryptocurrency exchanges reflects a balanced effort to foster innovation while safeguarding consumer welfare.