Fin. Code §§ 3101, 3102, 3201, 3901, 3902, 3904–3907; Code Civ. Proc. §§ 1516.5, 1568 (official text with history notes)
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California code sections: Digital Financial Assets Law, kiosks, unclaimed digital financial assets California code sections (official text) Source: California Legislative Counsel, legislative information public data, LAW_SECTION_TBL in pubinfo_2025.zip (file dated 2026-10-04), downloaded 2026-10-09 from https://downloads.leginfo.legislature.ca.gov/ . The same sections appear at https://leginfo.legislature.ca.gov/faces/codes.xhtml . Text reproduced without editing; history notes from the same table. Fin. Code § 3101 This division shall be known as the Digital Financial Assets Law. Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024. Fin. Code § 3102 (definitions) For purposes of this division: (a) “Applicant” means a person that applies for a license under this division. (b) “Bank” means a bank, savings bank, savings and loan association, savings association, or industrial loan company chartered under the laws of this state or any other state or under the laws of the United States. (c) “Control” means both of the following: (1) When used in reference to a transaction or relationship involving a digital financial asset, power to execute unilaterally or prevent indefinitely a digital financial asset transaction, unless the power to prevent indefinitely is limited to the ability to terminate, suspend, or interrupt a transaction solely in response to unauthorized or fraudulent activity. (2) When used in reference to a person, the direct or indirect power to do either of the following: (A) Vote 25 percent or more of any class of the voting securities issued by a person. (B) Direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, other than a commercial contract for goods or nonmanagement services, or otherwise, if no individual is deemed to control a person solely on account of being a director, officer, or employee of such person. (d) “Covered person” means a person required to obtain a license pursuant to this division. (e) “Credit union” means a credit union licensed under the laws of this state, or any other state, or a federal credit union chartered under the laws of the United States. (f) “Department” means the Department of Financial Protection and Innovation. (g) (1) “Digital financial asset” means 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. (2) “Digital financial asset” does not include any of the following: (A) A transaction in which a merchant grants, as part of an affinity or rewards program, digital representations of value that primarily relate to the affinity or rewards program and cannot be taken from or exchanged with the merchant for legal tender, bank or credit union credit, or a digital financial asset. (B) A digital representation of value issued by or on behalf of a publisher and used primarily within online games or game platforms and that is not otherwise a digital financial asset. (C) A security registered with or exempt from registration with the United States Securities and Exchange Commission or a security qualified with or exempt from qualifications with the department. (D) A digital record of ownership, or equivalent thereto, of tangible or intangible goods, including, but not limited to, any of the following: (i) Works of art, musical compositions, literary works, and similar intellectual property. (ii) Collectibles, merchandise, virtual land, and in-game assets. (iii) Digital affinity, loyalty, or rewards points granted by a merchant or a network of participating merchants if all of the following are true: (I) The points cannot be redeemed with a participating merchant in exchange for legal tender, bank or credit union credit, or a digital financial asset. (II) The points can only be redeemed by participating merchants as part of the purchase of goods or services, which does not include digital financial assets. (III) The points are granted or redeemed by participating merchants pursuant to a formal loyalty program intended to reward frequent customers. (iv) Licenses, tickets, and similar rights to attend events or participate in activities. (h) “Digital financial asset business activity” means either of the following: (1) Exchanging, transferring, or storing a digital financial asset. (2) Holding electronic precious metals or electronic certificates representing interests in precious metals on behalf of another person or issuing shares or electronic certificates representing interests in precious metals. (i) “Exchange,” when used as a verb, means to assume control of a digital financial asset from, or on behalf of, a resident, at least momentarily, to sell, trade, or convert either of the following: (1) A digital financial asset for legal tender, bank or credit union credit, or one or more forms of digital financial assets. (2) Legal tender or bank or credit union credit for one or more forms of digital financial assets. (j) “Executive officer” includes, but is not limited to, an individual who is a director, officer, manager, managing member, partner, or trustee of a person that is not an individual, or any other person who performs similar policymaking or policy implementation functions. (k) “Insolvent” means any of the following: (1) Having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute. (2) Being unable to pay debts as they become due. (3) Being insolvent within the meaning of federal bankruptcy law. ( l ) “Legal tender” means a medium of exchange or unit of value, including the coin or paper money of the United States, issued by the United States or by another government. (m) “Licensee” means a person licensed or conditionally licensed under this division. (n) (1) “Person” means an individual, partnership, estate, business or nonprofit entity, or other legal entity. (2) “Person” does not include a government-sponsored enterprise, government, or governmental subdivision, agency, or instrumentality. (o) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. (p) (1) “Resident” means any of the following: (A) A person who is domiciled in this state. (B) A person who is physically located in this state for more than 183 days of the previous 365 days. (C) A person who has a place of business in this state. (D) A legal representative of a person that is domiciled in this state. (2) Notwithstanding paragraph (1), “resident” does not include a licensee or an affiliate, as defined in subdivision (a) of Section 90005, of a licensee. (q) “Responsible individual” means an individual who has direct control over, or significant management policy and decisionmaking authority with respect to, a licensee’s digital financial asset business activity in this state. (r) “SAFE Act” means the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Public Law 110-289). (s) “Sign” means, with present intent to authenticate or adopt a record, either of the following: (1) To execute or adopt a tangible symbol. (2) To attach to, or logically associate with, the record an electronic symbol, sound, or process. (t) “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. (u) “Store,” except in the phrase “store of value,” means to maintain control of a digital financial asset on behalf of a resident by a person other than the resident. “Storage” and “storing” have corresponding meanings. (v) “Transfer” means to assume control of a digital financial asset from, or on behalf of, a resident and to subsequently do any of the following: (1) Credit the digital financial asset to the account of another person. (2) Move the digital financial asset from one account of a resident to another account of the same resident. (3) Relinquish control of a digital financial asset to another person. (w) “United States dollar equivalent of digital financial assets” means the equivalent value of a particular digital financial asset in United States dollars shown on a digital financial asset exchange based in the United States for a particular date or period specified in this division. Amended by Stats. 2026, Ch. 52, Sec. 1. (SB 97) Effective June 30, 2026. Fin. Code § 3201 (license required on or after July 1, 2026) On or after July 1, 2026, a person shall not engage in digital financial asset business activity, or hold itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of the following is true: (a) The person is licensed in this state by the department under Section 3203. (b) The person submits a completed application on or before July 1, 2026, and is awaiting approval or denial of that application. (c) The person is exempt from licensure under this division pursuant to Section 3103. Amended by Stats. 2026, Ch. 52, Sec. 3. (SB 97) Effective June 30, 2026. Fin. Code § 3901 (kiosk definitions) For purposes of this division: (a) “Charges” means either of the following: (1) Fees or expenses paid by the customer. (2) The difference between the current market price of the digital financial asset on a licensed digital financial asset exchange and the price of the digital financial asset charged to the customer. (b) (1) “Digital financial asset transaction kiosk” means an electronic information processing device that is capable of accepting or dispensing cash in exchange for a digital financial asset. (2) As used in this subdivision, “cash” means physical United States currency, both coins and paper currency. (c) “Licensed digital financial asset exchange” means a digital financial asset exchange that is not an operator and has either of the following: (1) A license to conduct virtual currency business activity in this state or the State of New York pursuant to Part 200 of Title 23 of the New York Codes, Rules and Regulations. (2) A license pursuant to this division. (d) “Operator” means a person who owns, operates, or manages a digital financial asset transaction kiosk located in this state. Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024. Fin. Code § 3902 (kiosk $1,000 daily limit) An operator shall not accept or dispense more than one thousand dollars ($1,000) in a day from or to a customer via a digital financial asset transaction kiosk. Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024. Fin. Code § 3904 (kiosk charge cap) On or after January 1, 2025, an operator shall not collect charges, whether direct or indirect, from a customer related to a single digital financial asset transaction that exceed the greater of the following: (a) Five dollars ($5). (b) Fifteen percent of the United States dollar equivalent of digital financial assets involved in the transaction according to the publicly quoted market price of the digital asset on a licensed digital financial asset exchange at the time the customer initiates the transaction. Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024. Fin. Code § 3905 (kiosk disclosures and receipts) (a) (1) On or after January 1, 2025, before a digital financial asset transaction, an operator shall provide a written disclosure in English and in the same language principally used by the operator to advertise, solicit, or negotiate with a customer containing the terms and conditions of the transaction, which shall include, at a minimum, all of the following: (A) The amount of a digital financial asset involved in the transaction. (B) The amount, in United States dollars, of any fees, expenses, and charges collected by the operator. (C) The United States dollar price of the digital financial asset that is charged to the customer and the United States dollar price of the digital financial asset as listed by a licensed digital financial asset exchange. (D) If an operator does not provide a method to reverse or refund a transaction, a warning that all transactions are final and cannot be undone. (2) The disclosure required by this subdivision shall be clear and conspicuous and provided separately from any other disclosure provided by the operator. (b) An operator shall provide a customer with a receipt for any transaction made at the operator’s digital financial asset transaction kiosk that includes all of the following information: (1) The name of the customer. (2) The date and time of the transaction. (3) The name of the operator. (4) The amount of a digital financial asset involved in the transaction. (5) The amount of United States dollars involved in the transaction. (6) The amount, in United States dollars, of any fees collected by the operator in relation to the transaction. (7) The amount, in United States dollars, of any spread between the United States dollar price of the digital financial asset that is charged to the customer and the United States dollar price of the digital financial asset as listed by a licensed digital financial asset exchange. (8) The name of the licensed digital financial asset exchange the operator used to calculate the spread described in paragraph (7). Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024. Fin. Code § 3906 (kiosk location list) (a) An operator shall provide to the department a list of all locations of digital financial asset transaction kiosks that the operator owns, operates, or manages in this state. (b) An operator shall provide the department with updates to the list required by this section within 30 days of any changes. (c) The department shall make the list required by this section for each operator available to the public on the department’s internet website. Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024. Fin. Code § 3907 (kiosk operators and DFAL licensing) (a) On or after July 1, 2026, an operator shall comply with Section 3201 to the extent that the operator engages in digital financial asset business activity. (b) If an operator does not engage in digital financial asset business activity but allows or facilitates another person to engage in digital financial asset business activity via a digital financial asset transaction kiosk that is owned, operated, or managed by the operator, the operator shall do all of the following: (1) On or after July 1, 2026, ensure that the person engaging in digital financial asset business activity via the digital financial asset transaction kiosk has a license pursuant to this division. (2) Ensure that any charges collected from a customer, whether collected by the operator, a person engaging in digital financial asset business activity via the digital financial asset transaction kiosk, or both, comply with the limits provided by Section 3904. (3) Comply with all other provisions of this chapter. Amended by Stats. 2024, Ch. 945, Sec. 6. (AB 1934) Effective January 1, 2025. Code Civ. Proc. § 1516.5 (escheat of digital financial assets) (a) Pursuant to Section 1510, any digital financial asset held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from either of the following: (1) The date a written or electronic communication to the owner is returned undelivered by the United States Postal Service or by electronic mail or other electronic messaging method, as applicable. (2) The date of the last exercise of an act of ownership interest by the owner in the digital asset account if the owner does not receive written or electronic communications from the holder or the holder does not have the means of systematically tracking or monitoring the nondelivery of those communications. (b) The running of the three-year period under paragraph (1) of subdivision (a) shall cease immediately upon the exercise of an act of ownership interest in the digital asset account or written, oral, or electronic communication with the holder as evidenced by a memorandum or other record on file with the holder or its agents. (c) For purposes of this section, an “exercise of an act of ownership interest” includes any of the following actions by the owner regarding the digital asset account: (1) Conducting a transaction regarding the digital asset account, including buying or selling digital assets, depositing into or withdrawing from the account fiat currency or other property whether by a one-time transaction or a recurring transaction previously authorized by the owner. (2) Electronically accessing the digital asset account. (3) Conducting any activity with respect to another digital asset account or any other property owned by the owner with the same holder. (4) Taking any other action that reasonably demonstrates to the holder that the owner knows that the property exists. (d) (1) The last known address of an apparent owner, for the purpose of determining the jurisdiction over property subject to escheat pursuant to this section, is either of the following: (A) The address used for purposes of delivering first-class United States mail. (B) Any description, code, or other indication of the location of the apparent owner that identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States Postal Service mail to the apparent owner. (2) If there is a conflict between the address identified in subparagraph (A) of paragraph (1) and any description, code, or other indication identified in subparagraph (B) of paragraph (1), the address identified in subparagraph (A) shall be deemed as the last known address of the apparent owner. (e) If the business association has a mailing address for the apparent owner of a digital financial asset in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested. (f) If the business association does not have a mailing address for the apparent owner of a digital financial asset in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically. (g) Notice pursuant to this subdivision shall be sent not less than 6 nor more than 12 months before the time the digital financial asset becomes reportable to the Controller under this chapter. (1) The notice shall state at the top of the communication: “THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US,” or substantially similar language. (2) The notice shall specify the time when the digital financial asset will escheat and the effects of escheat, including the need to file a claim for the return of the digital financial asset. (3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading: (A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the digital financial asset. (B) Identify the digital financial asset by number or identifier, which need not exceed four digits. (C) Indicate that the digital financial asset is in danger of escheating to the state. (D) Specify that the Unclaimed Property Law requires business associations to transfer a digital financial asset if it has been unclaimed for three years. (4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owner’s current address. If that form is completed, signed by the owner, and returned to the holder of the digital financial asset, or other device in which the owner’s property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the digital financial asset and restarts the escheat period. (h) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the digital financial asset to the Controller. (i) The holder of any partial key to any digital financial asset that is subject to Section 1516.5 shall attempt to obtain the minimum number of keys required to transfer the digital financial assets within 60 days of determination that the digital financial assets are eligible for escheatment. Added by Stats. 2025, Ch. 660, Sec. 3. (SB 822) Effective January 1, 2026. Code Civ. Proc. § 1568 (custodians for escheated digital financial assets) (a) The Controller may select one or more custodians for the management and safekeeping of digital financial assets that have escheated to the state. Any entity selected as a custodian shall hold a valid license issued by the Department of Financial Protection and Innovation pursuant to Chapter 2 (commencing with Section 3201) of Division 1.25 of the Financial Code. (b) If the Controller selects a custodian pursuant to subdivision (a), the Controller shall consider the following criteria in making the selection: (1) Storage security to ensure the safekeeping of digital financial assets, including robust cybersecurity measures to prevent unauthorized access. (2) Capability to manage private keys associated with digital financial assets and ensure the ability to transfer or transact with the assets when required. (3) Proven experience in handling digital financial assets. (4) Compliance with all applicable federal and state regulations related to digital financial asset custody. (5) Regular reporting mechanisms to the Controller regarding the status and value of the digital financial assets in their custody. (6) Processes to reunite owners with their digital financial assets, including maintaining updated contact records and issuing timely notifications. (7) Qualifying as a “financial institution” under Chapter X of Title 31 of the Code of Federal Regulations, which subjects the qualified custodian to the anti-money laundering obligations of the federal Bank Secrecy Act (31 U.S.C. Sec. 5311 et seq.), in addition to any state-imposed anti-money laundering obligations. (8) Any other factor that the Controller deems relevant. Added by Stats. 2025, Ch. 660, Sec. 8. (SB 822) Effective January 1, 2026.