- Illinois enacts strict crypto laws, granting IDFPR oversight of exchanges and businesses.
- New rules cap kiosk fees at 18% and mandate refunds for first-time scam victims.
- Legislation underscores state-level political divides on digital asset regulation.
Illinois has enacted two major new cryptocurrency laws, a move designed to crack down on fraud and bring stricter regulation to digital asset businesses. Governor JB Pritzker signed the legislation on Monday, framing the measures as necessary safeguards at a time of growing scams and limited federal action.
New Law Sets Strict Rules for Crypto Exchanges
The first bill, the Digital Assets and Consumer Protection Act (SB 1797), creates a new regulatory framework that gives the state’s Department of Financial and Professional Regulation (IDFPR) direct authority over crypto exchanges. The measure requires firms to register with the department and comply with standards similar to those for traditional financial services.
Related: Key Democrat Breaks Ranks, Urges Party to Pass Crypto Bills to End “Wild West”
Under the new law, businesses must maintain sufficient financial resources, implement cybersecurity systems, and provide clear investment disclosures. The IDFPR is now empowered to supervise these companies and enforce asset safeguards. Digital asset firms have until July 1, 2027, to complete their registration.
“At a time when fraudsters continue to advance and consumer protections are being eroded at the federal level, Illinois is sending a clear message,” Governor Pritzker stated.
Crypto Kiosks Face New Fee Caps and Registration
The second new law, SB 2319, specifically regulates cryptocurrency kiosks. Operators must now register with the state, disclose the locations of their machines, and limit their transaction fees to 18%. The law also requires kiosks to issue full refunds to new customers who are the victims of scams.
These new rules, which are effective immediately, are designed to bring transparency to a part of the industry that has faced heavy criticism.
The Political Context
IDFPR Secretary Mario Treto Jr. called the legislation “a monumental victory that prioritizes the safety and security of the people of Illinois, while also opening the way for a more transparent and accessible marketplace.”
Related: Coinbase Faces Lawsuit Over Alleged Breach of Illinois Biometric Privacy Laws
The move shows broader political differences on digital assets. Since Republicans won the November election, states such as Texas and Arizona have adopted industry-friendly approaches, while Illinois has taken a cautious stance. Earlier this year, Illinois legislators introduced House Bill 1844 to create a strategic Bitcoin reserve, though the proposal has remained in committee.
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Source: https://coinedition.com/new-illinois-law-caps-crypto-kiosk-fees-at-18-and-mandates-scam-refunds/
