Overview
- California’s Department of Financial Protection and Innovation (DFPI) will require, beginning July 1, 2026, that any company moving, storing, or exchanging digital money hold a state license or have a completed application to keep serving residents.
- The framework covers crypto exchanges, remittance apps, digital wallets, and cryptocurrency kiosks that handle transactions for people in the state.
- Applicants must prove solid finances and robust controls, including customer identity checks, ongoing transaction monitoring, reporting of suspicious activity, and full cybersecurity programs with multi‑factor logins, data encryption, access controls, and breach response plans.
- DFPI guidance sets initial financial floors, including at least $100,000 in net tangible assets and a $500,000 surety bond, with amounts tailored to each firm’s risk and size.
- Users—especially Latino and migrant families who rely on remittances—could see some apps pause service if they miss the deadline, so people should check an app’s license status and prepare a backup option for sending or holding funds.