Virginia has implemented a new decentralized digital asset system, which requires the state to use cryptocurrencies in their original state for a set period of time before selling them.
Governor Abigail Spanberger signed House Bill 798 into law on April 14, which outlines changes to the way the government handles abandoned crypto accounts. The measure It will go into effect on July 1, 2026, and will change Virginia’s unspecified laws to include the digital economy.
Under the law, cryptocurrencies held in customer accounts that show no activity for five years can be considered abandoned and transferred to state prison. Unlike the practice in many jurisdictions, the property must be transferred “in kind,” meaning that the government receives actual tokens rather than converting them into cash upon receipt.
Change addresses a long-standing concern among crypto users and trading companies. In many cases, countries will liquidate digital assets immediately after acquisition, leaving owners who later acquire the funds with only cash at the time of sale. This strategy exposed claimants to the risk of not being able to profit from the increased market share.
Virginia must have crypto for one year
A new Virginia law aims to reduce this risk. It requires the government to store the digital asset for one year before it expires. At that time, the owners who come forward can return their property in its original form if it is not sold, or receive the sale price or the market value at the time of the decision, which is greater.
The law defines a digital asset as an expression of value that is used as a medium of exchange, a unit of account, or a store of value, and excludes other items such as game money and non-transferable prizes.
It also describes what constitutes an owner’s actions, including taking action, logging into an account, or other actions that indicate awareness of the account, which also establishes the remaining time.
Deposit rules depend on whether an owner, such as a crypto exchange, controls it private keys connection with goods. If full ownership exists, the owner must transfer the property directly to the government. If the control remains limited, the owner must keep the property until the transfer is possible. The law also allows the government to ban products if it cannot maintain certain products.
The company’s performance has been positive. Paul Grewal, chief legal officer at Coinbase, he said the standard ensures that digital assets are managed in a way that preserves their appearance at the time the assets are not taken.
Virginia joins a growing number of states that have moved to change their undisclosed property laws to account for digital assets. States like California have it adopted similar methodsalthough methods vary as to whether goods should be removed or stored in a different form.
For crypto companies operating in Virginia, the law introduces new requirements regarding reporting, storage, and transfers.
For users, it provides strong protection against forced deletion and a clear way to recover things that fall into trouble.
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