California Governor Gavin Newsom has signed a crypto licensing bill that enforces stricter regulations on businesses involved in cryptocurrency transactions. These regulations are set to come into effect in July 2025.
Announced on October 13, the “Digital Financial Assets Law” mandates California’s Department of Financial Protection and Innovation (DFPI) to establish a clear framework for cryptocurrency operations.
The bill grants DFPI the authority to create rules and mandates that cryptocurrency businesses adhere to these regulations.
Under this new framework, cryptocurrency-related businesses will be allowed to operate only if they meet the framework’s criteria and are licensed by the DFPI.
The law mandates that businesses seeking a license for engaging in digital financial asset business activities with residents must provide specific information, which includes disclosing a fee and charge schedule.
Failure to comply with the bill’s requirements will result in enforcement actions against non-compliant businesses.
The primary aim of this framework is to safeguard consumers and investors, combat fraud, and hold wrongdoers accountable.
This marks another government initiative aimed at safeguarding the public from prevalent malicious activities in the Web3 landscape.
In a recent report dated October 11, the UK Committee raised alarms over issues such as NFT copyright violations, the integration of NFTs in the sports industry, and NFT-related advertising. The report urged government intervention to protect creators’ rights.
Simultaneously, within the metaverse sphere, Dubai has unveiled a Responsible Metaverse Self-Governance Framework, designed to tackle metaverse-related challenges. This framework places a strong emphasis on privacy, transparency, and inclusivity, with the overarching objective of fostering a safer and more responsible metaverse ecosystem.