California will require all crypto companies serving state residents to obtain a DFAL license, submit an application, or qualify for an exemption by July 1, 2026. Applications will open on March 9, 2026, through the Nationwide Multistate Licensing System, with a detailed checklist and industry training scheduled for March 23.
The DFAL law, signed by Governor Gavin Newsom in October 2023, establishes a statewide supervisory framework for digital asset services, including specific requirements for crypto kiosks. The framework has been compared to New York’s 2015 BitLicense, which prompted companies such as Kraken and Bitfinex to exit the state.
California is home to roughly a quarter of the country’s blockchain firms. Joe Ciccolo, executive director of the California Blockchain Advocacy Coalition, noted that DFAL could standardize compliance nationally, attract operators with institutional capital, and push marginal or under-resourced companies to leave the state.
The DFPI has taken proactive measures to reduce disruptions, including early opening of applications and publishing a checklist. Companies that fail to meet the deadline without an active application or valid exemption will face enforcement action.
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