California Governor Gavin Newsom signed a bill to regulate cryptocurrency operations, which will come into effect in 2025.
According to information in a press release on Friday, the legal tool “will force cryptocurrency companies to comply with licensing requirements, maintain financial records, and provide regulators with the authority to conduct audits,” among others.
In the announcement, Newsom referred to the bill titled “Digital Financial Assets Law” that will establish the rules to which both individuals and companies must submit, in addition to “obtaining a license from the Department of Financial Protection and Innovation (DFPI) to carry out commercial activities with digital assets.”
The regulation of transactions with these digital assets in California will come into effect, according to the statement, on July 1, 2025. From that moment on, companies and people in the cryptocurrency trading market will be subject to “strict requirements”, auditing of crypto companies, as well as forcing them to comply with registration requirements.”
For five years after the start of operations, the licensee must maintain specific records, such as the accounting book with monthly records of all “assets, liabilities, capital, income and expenses.”
It is important to note that crypto transaction regulations in the United States seek to protect people from crimes such as hacking and unauthorized transfers.
(Reference image source: Ewan Kennedy, Unsplash)