According to an announcement from the California Department of Justice, asset management giant Fidelity, through its subsidiary Fidelity Digital Assets, has agreed to pay $500,000 to settle a dispute with the California government over previously restricting users from withdrawing crypto assets. Regulators pointed out that between November 2022 and April 2025, Fidelity allowed California retail customers to buy and sell cryptocurrencies but prohibited transferring assets to external wallets, allegedly violating California's Commodity Law regarding physical delivery requirements. Fidelity denied any wrongdoing, stating the restrictions were due to not yet obtaining approval from the New York State Department of Financial Services (NYDFS). The company opened external wallet transfer functionality for all California retail customers in June 2025. Notably, the related terms explicitly do not apply to Crypto IRAs (individual retirement accounts), as such accounts still do not support direct transfers to external wallets. https://www.(wublock123.com)/news/fidelity-has-reached-a-500000-settlement-with-california-in-the-united-states-for-prohibiting-cryptocurrency-users-from-withdrawing-funds-from-external-wallets-70496