---
type: subdivision
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "north_america", "fatf", "legal"]
aliases: ["US-CA", "USA-CA"]
created: 2026-04-13
updated: 2025-11-15
compile_into: ["[[country--united-states]]"]
sources:
  - name: "DFPI California"
    url: "https://dfpi.ca.gov"
    type: "official"
---

#  California (US-CA) — Crypto Regulation

> California regulates cryptocurrency under the California Department of Financial Protection and Innovation (DFPI) with a focus on consumer protection and enforcement actions against unlicensed crypto lending and overcharging. The state operates under the Digital Financial Assets Law (AB 39, 2023) and the California Money Transmission Act.

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Sub-jurisdiction of | [[country--united-states|United States]] |
| Risk Score | 35/100 (Moderate Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--north-america|north america]] |
| Currency | [[entity--usd|USD]] |

## Tax

| Type | Rate |
|------|------|
| VAT on Crypto | No |

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--dfpi|DFPI]] |
| Framework | Digital Financial Assets Law (AB 39, 2023); California Money Transmission Act |
| Ease | medium |
| Cost | $50,000 - $500,000 |
| Timeline | 6-18 months |

Licensing is required for crypto lending and money transmission activities; enforcement actions have been taken against unlicensed operators.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | fsrb_only |

## DeFi

**Status:** regulated

DeFi activities are regulated under California's financial laws with a focus on consumer protection and licensing requirements.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under the state's financial regulatory framework to ensure consumer protection and compliance.

## NFTs

**Status:** no_rules

No specific NFT regulation

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.1/kWh |
| Renewable Energy | 20% |
| Climate | temperate |
| Infrastructure | excellent |

Mining is legal with moderate electricity costs and good infrastructure; renewable energy accounts for 20% of electricity.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | very_stable |
| Sanctions | No |
| Corruption Index | 67/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

Enforcement focused on unlicensed operators and consumer protection

## CBDC Status: exploring

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [DFPI California](https://dfpi.ca.gov)