Governor Newsom Approves California's Crypto Licensing Bill

The recently passed bill requiring crypto exchanges and other digital asset firms to obtain a license in California was signed into law by Governor Gavin Newsom on Friday.

Described as California's version of BitLicence, the controversial New York crypto regulation law passed in 2015, the Digital Financial Assets Law is the closest the state has come to regulating the crypto industry.

The new law, which would go into effect in January 2025,gives the state's Department of Financial Protection and Innovation(DFPI) the full range to create a crypto licensing framework geared towards consumer protection and innovation.

"It is essential that we strike the appropriate balance between protecting consumers from harm and fostering a responsible innovation and I look forward to working with the author [of the bill] to achieve this", Newsom said.

Following the bill's approval, the sponsor Assemblyman Tim Grayson, who is representing the 15th Assembly District, took to X to publicise the new development.

It is important to recall that in September 2022, California Democratic Governor Gavin Newsom vetoed a similar bill, calling it "immature".