California to Seize Forgotten Bitcoin on Exchanges

The California State Assembly has approved Assembly Bill (AB) 1052, a bill that would allow the state to take custody of bitcoin (BTC) and other cryptocurrencies left idle on centralized exchanges for three years or more.

The proposal, which now heads to the state Senate, seeks to expand California’s “Unclaimed Property” law to cover digital assets. It already covers traditional assets such as bank accounts and safe deposits within the current legal framework.

Under the proposal, any crypto deemed ‘abandoned’ could be claimed by the state as unclaimed property, similar to forgotten bank accounts or uncashed checks. For crypto holders, this raises serious questions about asset security, exchange policies, and how to protect long-term holdings.

‘Acts of Ownership’ required on exchanges 

Under the proposed law, activities like logging into accounts, making transactions, or conducting deposits and withdrawals are considered “acts of ownership.”

If a user fails to perform these actions over a three-year period, the assets may be deemed ‘abandoned’—potentially allowing the state to claim them as unclaimed property.

The proposal includes a provision to preserve the original value of each digital asset that falls under state custody. Unlike traditional unclaimed assets—such as dormant bank accounts, which are typically liquidated into dollars—any seized cryptocurrencies would be held in their native form, meaning Bitcoin remains Bitcoin, Ethereum remains Ethereum, and so on.

This ensures that owners, if they reclaim their funds later, receive the value based on the market price at the time they reclaim. 

Although owners can reclaim their assets from the state, it’s unlikely to be a simple or fast process.

Self-custody wallets are unaffected 

The regulation will only affect digital assets deposited on custodial platforms, such as centralized exchanges. In contrast, self-custody Bitcoin wallets, where users maintain full control of their private keys, won’t be affected by this law.

Although AB 1052 encourages the self-custody of Bitcoin and other digital assets, its passage has sparked significant debate. Supporters argue it modernizes unclaimed property laws, while critics view it as government overreach that could undermine financial privacy.

Your Keys, Your Coins: The Golden Rule of Crypto

At its core, AB 1052 serves as a real-world reminder of the Bitcoin community’s guiding principle: “If it’s not your keys, it’s not your coins.” 

This has reignited discussions about the importance of self-custody, prompting many to move their assets off exchanges and into private wallets. 

By doing so, users align with Bitcoin’s original decentralized ethos, ensuring direct control over their holdings—just as Satoshi Nakamoto envisioned.

Recently, SEC Chair Paul Atkins emphasized that the right to self-custody of private property is “a foundational American value”.

At present, the bill is progressing through legislative discussions, where it may undergo revisions or face rejection. If it clears this phase, Governor Gavin Newsom will have 30 days to either approve or veto it.

If approved, California would establish a regulatory framework that other states might follow, potentially speeding up the adoption of digital assets within the conventional financial sector.

For this reason, transferring cryptocurrency from exchanges to personal wallets is a prudent choice.

For anyone serious about protecting their digital wealth, now’s the time to move long-term holdings off exchanges and into personal wallets. Waiting could cost you—not just in potential market gains, but in fighting through legal red tape later on.

No KYC Ways to Buy Bitcoin

Buying and storing your Bitcoin in a centralized exchange is synonymous to keeping money in a bank. Even though you own the asset, the exchange maintains full control and custody over it – heightening vulnerabilities that could lead to losses from security breaches, hacks, and fraud. 

In recent years, several centralized exchanges have been hacked, resulting in the loss of billions of dollars in user funds. It is, therefore, no surprise that many are turning to decentralized solutions to maintain complete ownership over their Bitcoin. 

After all, the whole idea behind cryptocurrency as a concept is to deliver a decentralized financial architecture that operates outside the control of government agencies. 

However, the manner in which centralized exchanges operate is fundamentally at odds with the decentralized ethos of cryptocurrencies. They enforce KYC protocols, asking users to submit government-issued verification, proof of address, or any personal details. 

And with regulatory scrutiny rising across the globe, these platforms are likely to share the data with government agencies – raising serious concerns among those who cherish their data above anything else.  

It’s little wonder that an increasing number of users are gravitating towards non-custodial, no KYC wallets like Best Wallet to securely buy and store their Bitcoin. 

Best Wallet is a name almost every privacy-oriented individual recognizes. It offers a secure, decentralized, and easy-to-use facility for buying Bitcoin without demanding any personal details.

Best Wallet’s decentralized posture means users maintain full control over their assets. However, unlike other self-custody solutions, it does not just leave the security of assets into the hands of users alone. It provides something extra through Fireblocks – a cutting-edge security tool that provides a mix of protection and accessibility. 

Its support for multiple fiat payment options including credit/debit cards, bank transfers, Google Pay, and Apple Pay ensures fast transactions and a seamless experience. 

With other impressive features such as portfolio tracking, cross-chain swaps, staking, and a token launchpad, Best Wallet remains a go-to destination for those looking to trade safely without compromising their data.

Download Best Wallet

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