Key Takeaways
- Illinois has enacted new laws to regulate crypto exchanges and protect consumers from digital asset fraud.
- The legislation requires registration, sets transaction limits and fees, and mandates refunds for scam victims.
Illinois has become the first state in the Midwest to enact crypto-specific consumer protection laws.
On Monday, Governor JB Pritzker signed into law the Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319), which are designed to regulate crypto assets and strengthen safeguards against digital asset fraud, according to a new press release.
Under SB1797, the Illinois Department of Financial and Professional Regulation (IDFPR) can supervise crypto businesses, enforce asset safeguards, and mandate cybersecurity and anti-fraud protections.
Meanwhile, with SB2319, Illinois is placing strict oversight over digital asset kiosks. Crypto kiosk operators must register with the state, disclose their locations, cap fees at 18%, and issue full refunds to new customers who are scammed.
In a statement upon signing the legislation, Governor Pritzker distanced Illinois’ approach from Washington’s deregulatory stance, saying the state will not tolerate fraudsters taking advantage of consumers in the digital asset market.
IDFPR Secretary Mario Treto Jr. called the legislation “a monumental victory that prioritizes the safety and security of the people of Illinois, while also paving the way for a more transparent and accessible marketplace.”
The new consumer protections, including refunds for fraud victims, take effect immediately. Digital asset businesses operating in Illinois have until July 1, 2027, to register with IDFPR.
Apart from crypto consumer protection legislation, Illinois also introduced House Bill 1844, proposing the establishment of a strategic Bitcoin reserve early this year. The bill has not advanced since being referred to the Rules Committee in January.
Source: https://cryptobriefing.com/illinois-crypto-consumer-protection-laws/
