Virginia Enacts Law for In-Kind Transfer of Dormant Crypto
- Virginia Governor Abigail Spanberger signed HB 798 on April 13, requiring exchanges to transfer dormant cryptocurrency to the state in-kind after five years.
- The law takes effect on July 1, giving crypto custodians approximately two and a half months to implement compliance changes.
- Self-custody through non-custodial wallets remains the only way to keep digital assets fully outside escheat reach.
- Coinbase CLO Paul Grewal praised the law as it prevents immediate forced liquidation of unclaimed digital assets.
- The bill passed with overwhelming support in both the Virginia House (96-2) and Senate (40-0).
Under this new framework, property held in a digital asset account is presumed abandoned after five years of inactivity unless ownership actions reset the clock. Once transferred, the state must hold these assets for at least one year before any potential sale.
This legislation ensures that dormant crypto holdings are not liquidated at potentially unfavorable market conditions, preserving their value for owners who may later claim them.(Source)
