California Digital Financial Assets Law (DFAL)

The Digital Financial Assets Law requires firms engaging in digital financial asset business activity with California residents to hold a licence from the California Department of Financial Protection and Innovation (DFPI), unless an exemption applies. The licensing requirement took effect on 1 July 2026, after the original 2025 date was pushed back.

California has one of the largest crypto user bases in the US, so the DFAL adds another register to check for firms serving US customers. It sits alongside FinCEN registration and other state licences.