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HomeFinancial CodeDiv. 1.25Ch. 4§ 3401 Enforcement Measure Definition

§ 3401 Enforcement Measure Definition

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 3401 Enforcement Measure Definition

Key Takeaways

  • •The law lets officials punish people or companies who break rules about digital money (like Bitcoin).
  • •They can take away licenses, stop bad actions, or even ask a court to freeze assets.
  • •If someone loses money because of a rule-breaker, officials can try to get their money back.
  • •Fines or other penalties can be given to those who don’t follow the rules.

Example

A company takes people’s Bitcoin but doesn’t give it back when asked.

The government can step in, shut down the company’s license, and try to return the Bitcoin to the people who lost it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 3401 Enforcement Measure Definition

For the purpose of this chapter, “enforcement measure” means an action that includes, but is not limited to, all of the following: (a) Suspend or revoke a license under this division. (b) Order a person to cease and desist from doing digital financial asset business activity with, or on behalf of, a resident. (c) Request the court to appoint a receiver for the assets of a person doing digital financial asset business activity with, or on behalf of, a resident. (d) Request the court to issue temporary, preliminary, or permanent injunctive relief against a person doing digital financial asset business activity with, or on behalf of, a resident. (e) Assess a penalty under Section 3407. (f) Recover on the security under Section 3207 and initiate a plan to distribute the proceeds for the benefit of a resident injured by a violation of this division, or law of this state other than this division that applies to digital financial asset business activity with, or on behalf of, a resident. (g) Impose necessary or appropriate conditions on the conduct of digital financial asset business activity with, or on behalf of, a resident. (h) Seek restitution on behalf of a resident if the department shows economic injury due to a violation of this division. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)

Last verified: January 23, 2026

Key Terms

enforcementactivityrestitutionbenefitpenaltyinjunctioninjurylicense

Related Statutes

  • § 3403 Enforcement Against Licensees
  • § 3407 Civil Penalties For Digital Assets
  • § 100023 Commissioner Licensee Examination
  • § 17607 Commissioner Enforcement Injunctions
  • § 3405 Enforcement Procedures Notice Hearing

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 3401.
View Official Source