Unclaimed property: virtual currency.

Senator Becker's legislation brings virtual currency under California's Unclaimed Property Law, establishing procedures for digital assets that remain unclaimed for three years. The bill defines virtual currency as digital representations of value used for exchange or storage, while excluding software protocols, gaming content, and loyalty programs.

The legislation requires businesses holding unclaimed virtual currency to notify apparent owners through certified mail or electronic communications 6-12 months before escheatment. These notices must prominently warn owners about potential transfer to the state and include forms allowing them to confirm their current address, which restarts the escheatment period. Holders must transfer unclaimed virtual currency to the State Controller's designated cryptocurrency custodian within 30 days of reporting.

For management of escheated virtual currency, the Controller may sell assets on established cryptocurrency exchanges at prevailing market prices. The Controller also maintains discretion to decline taking custody of virtual currency when deemed not in the state's interest. If virtual currency remains in state custody, validated claimants can receive either the original assets or net proceeds from their sale.

The bill modifies existing notification requirements by clarifying that an owner's last known address need not be complete if it sufficiently identifies California residence. It also authorizes holders to charge up to two dollars for processing escheatment notices to offset administrative costs.