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Once signed into law, it would come into effect on and after Jan. 1, 2025, at which point any operations that have not had a license issued to them would be prohibited. Individuals or entities that do not adhere to the law could receive a civil penalty of up to $100,000 for each day of violation. A “digital financial asset” is defined as a “digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, except as specified,” the bill laid out.
Some in the crypto industry are worried that the new law could lead California down a similar path of New York and its “BitLicense,” which many feel is too strict and limits the growth and innovation of blockchain technology in the state.