Short answer
The Digital Financial Assets Law takes effect July 1, 2026. From that date a covered business generally must hold a license to keep operating in California. A business that files a complete application before the deadline may generally continue while the DFPI reviews it, until the application is approved or denied.
The law's July 1, 2026 effective date is the date a covered business needs a DFAL license to continue serving California residents. The statute includes a transitional path: filing a complete application before the deadline generally preserves the ability to keep operating while the Department of Financial Protection and Innovation reviews it.
That makes timing the central question. The reliable approach is to assess your activity, build the program, and submit a complete application ahead of the window, with an independent licensing attorney confirming how the transitional rule applies to your situation.
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