Fidelity Digital Assets Settles California Crypto Withdrawal Probe

Fidelity Digital Assets, the institutional crypto custody and trading subsidiary of Fidelity Investments, has reached a $500,000 settlement with California regulators over a probe into the firm’s crypto withdrawal limits, according to records from the California Department of Financial Protection and Innovation. The settlement closes a state-level enforcement inquiry focused on how the firm disclosed and applied restrictions on customer access to digital assets held in custody. The California Department of Financial Protection and Innovation (DFPI) initiated the probe into Fidelity Digital Assets over the firm’s handling of crypto withdrawal limits, a restriction that governs how much of a customer’s…