"Virginia's new law requires that any digital asset account with five years of inactivity is presumed abandoned, compelling custodians to transfer the assets to the state. This change aims to clarify the treatment of digital assets under the Disposition of Unclaimed Property Act, which now explicitly includes rules for such assets."
"Critics of the law argue that it could negatively impact millions of crypto holders who buy and hold assets without the intent to abandon them. They express concern that the definition of abandonment may not accurately reflect the intentions of long-term investors in the cryptocurrency market."
"Once the state receives the dormant digital assets, it is required to hold them for at least one year before any potential sale. Owners who file a claim during this period can receive either the sale proceeds or the market value of the asset at the time of their claim."
Virginia Governor Abigail Spanberger signed HB 798, which requires exchanges to transfer dormant cryptocurrency to the state after five years of inactivity. The law, effective July 1, 2026, amends the Disposition of Unclaimed Property Act to include digital assets. Critics argue that many crypto holders do not intend to abandon their assets. The law allows account activity to reset the abandonment clock and mandates that custodians deliver tokens to the state. Owners can claim assets or proceeds after a one-year hold period.
Read at news.bitcoin.com
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