Virginia law protects unclaimed crypto for one year

Virginia's new law requires unclaimed crypto to be held in-kind for at least one year before liquidation, protecting owners from forced sales. The law takes effect July 1, 2026.

Virginia has passed House Bill 798, updating its unclaimed property laws to include digital assets like cryptocurrencies. Under this new law, unclaimed crypto that has been inactive for five years will be transferred to state custody in its original form, rather than being immediately liquidated or converted to cash. The state is required to hold these digital assets for at least one year before any sale or liquidation can take place. This measure is designed to protect asset owners from forced sales during market downturns and allows them to benefit from potential future appreciation if they reclaim their assets. Additionally, the law specifies a five-year inactivity period before accounts are deemed abandoned and mandates that partial key holders retain assets until a full transfer is possible. Taking effect on July 1, 2026, this legislation aligns Virginia with a broader trend among states to safeguard dormant crypto from automatic conversion to cash.