California Assembly Passes Bill Mandating Physical Custody of Dormant Cryptocurrencies

On June 5, the California State Assembly approved Bill AB1052, which includes cryptocurrencies under the 'Unclaimed Property Law', moving it forward to the State Senate for further deliberation. This bill mandates a significant shift from the traditional method of cash conversion by requiring physical custody of cryptocurrencies left unattended for three years at exchanges.

Under the current system, dormant account bitcoins are forcibly sold, and the owner can only claim the cash value at the time of sale when reclaiming. The bill's authors argue that, for instance, 0.444 BTC purchased for $100 in 2015, which was sold for $3,500 in 2018, would be claimed in 2025 not at its current value of $46,620 but merely $1,...