The post California Governor Approves Stricter Crypto Regulation Bill for 2025 Implementation appeared on BitcoinEthereumNews.com.

Governor Newsom’s endorsement of the crypto regulation bill represents a significant departure from his previous stance. California’s crypto industry is bracing for significant changes as Governor Gavin Newsom signs off on a groundbreaking regulatory bill expected to revamp the state’s digital asset landscape. The newly approved bill, the Digital Financial Assets Law, is slated to come into force in July 2025, bringing forth a series of stringent regulations for individuals and businesses engaged in crypto-related activities within the state. Under the provisions of the bill, all crypto entities will be mandated to obtain a license from the Department of Financial Protection and Innovation (DFPI) to ensure compliance with the state’s comprehensive regulatory framework. The move aims to bolster consumer protection and foster a more secure and responsible environment for crypto innovation.  California to Enforce Robust Auditing for Crypto Companies In an official statement on October 13, Governor Newsom said the new crypto bill provides the DFPI the authority to police crypto-related activities in the region with an 18-month implementation date to ensure the adopted regulatory framework can be thoughtfully tailored to address industry trends and mitigate consumer harm. According to the legislative documents, the new law also empowers the DFPI to enforce robust audit obligations on crypto firms and mandates them to uphold comprehensive financial records. It reads: “[This bill] would require a licensee to maintain […] for five 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.” The development comes as an expansion of the state’s money transmission laws, which currently restrict banking and transfer services from functioning without a valid license issued by the DFPI commissioner. DFPI to Take Enforcement Measures against Defaulters The legislative document also revealed…

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Filed under: News - @ October 16, 2023 10:14 am