California to Require DFPI License for Individuals and Firms to Engage in Crypto Activities in 2025

California Governor Gavin Newsom has approved a cryptocurrency bill that enforces stricter regulations on businesses conducting crypto operations, set to begin in July 2025. 

In a statement published on Oct. 13, Newsom declared that the bill, titled the Digital Financial Assets Law, will make it mandatory for both individuals and firms to obtain a Department of Financial Protection and Innovation (DFPI) license to engage in digital asset business activities.

In legislation documents, it cites California's money transmission laws, which prohibit banking and transfer services from operating without a license granted by the DFPI commissioner.

However, the new crypto bill will allow the DFPI to impose stringent audit requirements on crypto firms and force them to uphold recording requirements.

The statement noted, "[This bill] would require a licensee to maintain [...] for 5 years after the date of the activity, certain records, including a general ledger maintained at least monthly that lists all assets, liabilities, capital, income, and expenses of the licensee."

It further clarifies that firms not complying with the bill will face enforcement measures.

Around this time in 2022, Newsom declined to sign a similar bill that aimed to establish a licensing and regulatory framework for digital assets in California. Newsom suggested the bill wasn’t flexible enough to keep up with fast-changing crypto trends.

At the time, Newson stated that he was waiting for federal regulations to come into place before working with the legislature to establish crypto licensing initiatives.

(Source: CoinTelegraph)