Fidelity Pays $500,000 In California Crypto Withdrawal Settlement

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. California has secured a $500,000 settlement with Fidelity Digital Asset Services over restrictions that previously prevented some crypto customers from moving purchased coins to their own wallets. TL;DR: Attorney General Rob Bonta announced the settlement on October 16. California challenged historical withdrawal restrictions; Fidelity disputes that its conduct breached state law, and transfers were enabled after a 2025 regulatory approval. The issue is a straightforward one for anyone accustomed to self-custody: buying crypto through an app is not necessarily the same as being able to withdraw it. California’s commodity rules require certain transactions to involve physical delivery within a defined period. The state’s position is that delivery of cryptocurrency requires the buyer to be able to ...