DFAL is a comprehensive regulatory program for many crypto companies, requires DFPI to license and supervise many crypto asset-related companies that serve California residents, and provides important consumer protections for users. Furthermore, DFAL requires additional obligations for crypto kiosks operating in California.
Background
- July 1, 2026: Certain crypto companies serving Californians must have a DFAL license or have submitted a completed DFAL application.
- September 29, 2024: Governor Newsom signed AB 1934 which extended the date of licensure under DFAL from July 1, 2025 to July 1, 2026.
- October 13, 2023: Governor Newsom signed into law Assembly Bill 39 and Senate Bill 401, together called the Digital Financial Assets Law (DFAL).
Licensing Requirements for Crypto Businesses
Prospective Licensees
Prospective Licensees should read through the information on how to prepare an application on this page.
If you are a prospective DFAL licensee or have a question about how the law affects your business, join our email list to receive future updates or email [email protected].
Publications and Forms
For Crypto ATM/Kiosk Operators
The Digital Financial Assets Law requires a digital financial asset transaction kiosk operator (“kiosk operator”) to comply with certain requirements in California.
Beginning January 1, 2024, a kiosk operator must provide the Department a list of all kiosk locations that an operator owns, operates, or manages in the state. An operator is defined as a person who owns, operates, or manages a digital financial asset transaction kiosk located in this state. Additionally, by January 1, 2024, an operator (1) may not dispense or accept more than $1,000 in a day to or from a customer via kiosks and (2) must provide a customer with a receipt with specified information for any transaction made at the operator’s kiosk.
Beginning January 1, 2025, kiosk operators must provide pre-transaction disclosures to customers and are prohibited from collecting from customers in any single transaction the greater of $5 or 15% of the U.S. dollar equivalent of digital financial assets involved in the transaction. These dates remain operative for kiosk operators and were unchanged by AB 1934. With the passage of AB 1934, operators must comply with the licensing requirements stated in the law by July 1, 2026.
Learn more on the kiosk operators webpage.
Rulemaking Information
The DFAL provides the DFPI with rulemaking authority to ensure the adopted regulatory framework can be thoughtfully tailored to address industry trends and mitigate consumer harm.
To follow and participate in the DFPI’s rulemaking efforts under the DFAL, please visit the DFPI’s regulations homepage.
For Consumers
Since the Governor’s Office signed an executive order in 2022 to create a framework for regulating this new technology, DFPI has taken a growing role in overseeing the crypto landscape. Consumers who are interested in investing in Crypto should learn more and be aware of the risks and potential for fraud.
Here are some resources to get you started:
Apply for a DFAL license via the Nationwide Multistate Licensing System (NMLS).
How to reach us:
DFPI
Attn: Digital Financial Assets Law
One Sansome Street, Suite 600
San Francisco, CA 94104-4428
Phone: (866) 275-2677
Email: [email protected]