Published in cooperation between PRInfinimedia and the Morgan Hill Times
Cryptocurrency is legal in California and will soon face stricter rules. A new law will require crypto businesses to get licensed by mid‑2025. The state plans to regulate how digital coins are handled, stored and moved. This means more tracking and oversight for any group that offers crypto services.
But while these changes affect companies, the bigger question is how everyday people in cities like Morgan Hill are using crypto. Most people know about Bitcoin or Ethereum. Some may have heard of tokens or wallets. Still, knowing about crypto is not the same as using it.
Real Uses Already Underway
Crypto use is not just about trading coins or hoping prices go up. One use for it is in international payments. Businesses that move funds across borders now face tougher rules. A company working with partners in India, for example, must now follow both California’s law and India’s. That includes customer checks, transaction monitoring and keeping audit records. This adds time and cost, but it makes the process more secure.
Crypto has made its way into a few industries, but none have used it as fully as gaming. Regular businesses still don’t accept crypto often. But some games have built entire systems around it. These are not games that just accept crypto as payment. Instead of just trading coins, players are using them inside something they already do.
Casino-style games have also made space for crypto. Some offshore sites offer games where the whole system runs on blockchain. Players send and receive crypto directly. This cuts out banks and makes payments faster. One game that stands out is a popular variant called the crypto chicken game. It looks and feels like a video game. You control a chicken that races across a course. You try to avoid traps, landmines and lasers. The longer your chicken survives, the higher the payout. This setup is simple but clever. It links skill with payout options like Bitcoin, Ethereum and Litecoin, and that’s exactly why it’s trending. (Source: https://www.pokerscout.com/casino/chicken-game/)
Legal Status and New Licensing Rules
California has moved away from a loose system toward a more structured legal model. Before 2023, many companies operated with no formal licensing. They could transfer, exchange or store crypto without being part of any regulated process. That changed when the Digital Financial Assets Law was passed in October 2023. This law gives California a full licensing and compliance framework for crypto-related businesses.
By July 1, 2025, any business dealing in digital financial assets had to acquire a license. This includes exchanges, wallet providers and platforms that handle customer funds. The law requires these companies to meet several requirements. They must perform customer checks, keep records, report suspicious activity and meet anti-money laundering standards. If they fail to do this, they can face daily fines.
The Department of Financial Protection and Innovation is the main agency in charge of this law. It will review applications and make sure companies follow the rules. This shift marks a clear change: crypto in California is no longer outside the system. It now has to meet the same basic standards as other financial services.
Handling Dormant Crypto Assets
California has adopted another law that impacts unclaimed or inactive crypto. Assets that remain idle on an exchange for three years will be transferred to the custody of the state. But these assets have to be transferred in their original form. They cannot be sold or converted into cash during such transfer. This rule protects insurance owners from losing the value of their crypto by forced liquidation.
Senate Bill 822 describes the process. It says that the state will hold the assets safely until the rightful owner claims the assets. This includes assets such as Bitcoin or Ethereum. By retaining the original form, the law acknowledges that crypto constitutes a genuine form of property, rather than merely a square of numbers on a computer screen.
This law is important because people tend to forget about crypto. They forget passwords, lose devices or stop using a service. In the past, unclaimed assets may have been sold without warning. Now, California cannot allow those coins to be used up so that the owner might have an opportunity to recover them at full value.
The Broader Picture in Morgan Hill
California ranks high for crypto interest, but public use is still uneven. According to past studies, the state is one of the top three for crypto-related searches. But its unclear rules in the past may have slowed adoption. Now that the law is clearer, that may change. More people may start to use crypto if they feel it is safer and more accepted.
The new laws also give businesses more structure. They now know what the state expects. This may lead to better services that are easier to use. It also helps separate legitimate companies from those that cut corners.
For someone living in Morgan Hill, these new laws may not be visible yet. Local stores still take cash or cards. Most businesses are not advertising that they accept crypto. Even so, these rules affect how people can interact with crypto services online. If someone in Morgan Hill wants to use a wallet, buy coins or move assets, the company they use must meet the new standards.
