[ad_1]
Virginia has enacted a new framework for unclaimed digital assets, requiring the state to hold dormant cryptocurrency in its original form for a set period before any sale.
Governor Abigail Spanberger signed House Bill 798 into law on April 14, marking a shift in how the state handles abandoned crypto accounts. The measure will take effect on July 1, 2026, and updates Virginia’s unclaimed property statute to include digital assets.
Under the law, cryptocurrency held in customer accounts that show no activity for five years will be presumed abandoned and transferred to state custody. Unlike prior practices in many jurisdictions, the assets must be transferred “in-kind,” meaning the state takes possession of the actual tokens rather than converting them into cash upon receipt.
The change addresses a long-standing concern among crypto users and industry firms. In many cases, states have liquidated digital assets soon after taking custody, leaving owners who later reclaim funds with only the cash value at the time of sale. That approach exposed claimants to the risk of missing gains during market increases.
Virginia must hold crypto for one year
Virginia’s new statute aims to reduce that risk. It requires the state to hold digital assets for at least one year before any liquidation. During that period, owners who come forward can reclaim their property in its original form if it remains unsold, or receive either the sale proceeds or the market value at the time of the claim, whichever is greater.
The law defines digital assets as representations of value used as a medium of exchange, unit of account, or store of value, while excluding certain items such as in-game currencies and non-transferable rewards.
It also outlines what constitutes owner activity, including transactions, account access, or other actions that demonstrate awareness of the account, all of which reset the dormancy period.
Custody rules depend on whether a holder, such as a crypto exchange, controls the private keys tied to the assets. If full control exists, the holder must transfer the assets directly to the state. If control remains partial, the holder must retain the assets until transfer becomes possible. The law also allows the state to direct liquidation in cases where it cannot safely custody certain assets.
Industry reaction has been positive. Paul Grewal, chief legal officer at Coinbase, said the measure ensures that digital assets are handled in a way that preserves their native form during the unclaimed property process.
Virginia joins a growing number of states that have moved to update unclaimed property laws to account for digital assets. States such as California have taken similar steps, though approaches vary on whether assets must be liquidated or held in-kind.
For crypto firms operating in Virginia, the law introduces new compliance requirements tied to reporting, custody, and transfer procedures.
For users, it offers stronger protections against forced liquidation and a clearer path to reclaiming assets that fall into dormancy.
Editorial Disclaimer: We leverage AI as part of our editorial workflow, including to support research, image generation, and quality assurance processes. All content is directed, reviewed, and approved by our editorial team, who are accountable for accuracy and integrity. AI-generated images use only tools trained on properly licensed material. In Bitcoin, as in media: Don’t trust. Verify.
[ad_2]
Source link