California to mandate DFAL license for crypto firms from July 1

The U.S. state of California will require cryptocurrency companies to hold a license under its Digital Financial Assets Law (DFAL) starting July 1, Decrypt reported. Applications for the license will open on March 9. The DFAL mandates licensing for virtual asset firms within California and aims to strengthen consumer protection, requiring companies to meet strict standards for financial reporting, disclosures, and asset reserves. Local crypto organizations have raised concerns that while the regulation could set a standard for the rest of the U.S. and attract more reliable companies, it may also force smaller firms with less capital to exit the market.