PANews reported on February 18th that, according to Decrypt, California has officially begun the implementation process of the Digital Financial Assets Act (DFAL), requiring digital asset businesses serving California residents to hold a DFAL license, submit an application, or qualify for an exemption by July 1, 2026. Applications will open on March 9th through the national multistate licensing system, and regulators are urging businesses to review the NMLS list and attend industry training on March 23rd. Businesses that fail to submit a valid application or qualify for an exemption by the deadline will face enforcement action.

The bill, signed by Governor Gavin Newsom in October 2023, establishes a comprehensive state-level licensing and regulatory framework for crypto asset services and imposes additional requirements on crypto self-service terminals. Its structure and regulatory scope are often compared to New York's BitLicense, introduced in 2015, which led to the departure of major companies such as Kraken and Bitfinex from the state due to industry backlash.