California officially launches state-level encryption license system, requiring companies to complete DFAL compliance by July 2026 According to BlockBeats, on February 18th, the California Department of Financial Protection and Innovation (DFPI) released an update to the Digital Financial Assets Act (DFAL), which explicitly requires all individuals or companies providing cryptocurrency related services to California residents to hold a DFAL license, submit a license application, or meet exemption conditions before July 1, 2026, otherwise they will face enforcement action. DFAL was signed into effect by California Governor Gavin Newsom in October 2023, establishing a statewide framework for cryptocurrency licensing and regulation. The regulatory scope includes various types of digital asset services and cryptocurrency ATM terminals. This system is widely compared in the industry to the BitLicense launched in New York in 2015. According to the arrangement, the DFAL license application will be open through the Nationwide Multistate Licensing System (NMLS) on March 9, 2026. Regulatory authorities recommend that companies review the list in advance and participate in industry training on March 23. California accounts for about a quarter of the total number of blockchain companies in the United States. Joe Ciccolo, Executive Director of the California Blockchain Initiative Consortium (CBAC), stated that as California is the world's fourth largest economy, its regulatory path may drive companies to unify compliance standards across the United States. Clear and predictable rules can help attract serious operators and institutional capital, but he also warns that if enforcement is too aggressive or disconnected from industry reality, some companies may choose to exit the California market or turn overseas.