# What is the California DFAL license? *Reviewed 2026-05-15* ## Short answer The California Digital Financial Assets Law (DFAL), enacted as Assembly Bill 39, creates a dedicated license for digital asset businesses that serve California residents. It is administered by the Department of Financial Protection and Innovation, is separate from the state Money Transmission Act, and takes effect July 1, 2026. California's Digital Financial Assets Law is a purpose-built framework for digital asset activity rather than an extension of the existing money transmitter rules. It is run by the Department of Financial Protection and Innovation, and a business that exchanges, transfers, or stores digital assets for California residents generally needs the license once the law takes effect, unless an exemption applies. Applications run through the Nationwide Multistate Licensing System, and the regulator expects financial standards, custody and consumer protections, and an AML program. Whether your specific model is covered is a legal question, so an independent licensing attorney should confirm the classification before you file. ## Related - [California DFAL license](/california-dfal-license) - [Cryptocurrency licensing](/cryptocurrency-licensing) - [Contact our team](/contact)