On Monday, the 18th of August, two bills were passed by Illinois Governor Pritzker. These two bills covered the Digital Assets and Consumer Protection and the Digital Asset Kiosk Act.
The policy action aims to direct an ongoing debate about making Illinois one of the states that demand more of digital assets.
Ultimately, Illinois has become one of the states with clear regulatory goals, particularly in the absence of oversight at the Federal level.
The Digital Assets and Consumer Protection Act
The first bill, Digital Assets and Consumer Protection Act (SB 1797), gives the Illinois Department of Financial and Professional Regulation the power to regulate cryptocurrency exchanges and businesses.
As part of the law, companies are required to have sufficient reserves, improve security protocols, implement safeguards against fraud, provide customers with disclosures, and provide braided services with customer protections similar to those in regular banking and investing.
The intent of the law is to create transparency and accountability in an industry that has received criticism for failing to protect consumers.
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The Digital Asset Kiosk Act
The second piece of legislation, the Digital Asset Kiosk Act (SB 2319), specifically focuses on crypto ATMs or kiosks, which are gaining traction as crypto transactions, but are also becoming a source for fraud and other illegal acts.
Businesses will now need to be regulated by the state by registering and providing live customer service, as well as having a compliance framework that includes compliance officers and consumer protection officers.
In addition, consumers can now be more protected by the fact that if a user persists in patronizing unregulated kiosks, there is a compliance officer and a consumer protection officer to monitor
In addition, operators are henceforth required to limit transaction fees to a maximum of 18% and daily transactions to $2,500 for new customers
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Political Response and Fraud Concerns
Governor Pritzker pointed out that the legislation comes at a needed time when fraud as it pertains to digital assets is surging.
He referenced FBI figures, which reported that Illinois residents lost over $272 million to crypto-related scams in 2024, the fifth-highest across the U.S.
Pritzker also criticized former President Donald Trump’s digital finance policy, saying that his administration was “letting crypto bros write federal policy,” as Illinois would bring “common-sense protections” to the public.
The comments illustrate differences in policies on how aggressively to regulate digital assets at the federal level.
Global Trend of Stricter Crypto Oversight
Illinois’ new laws arrive amid a broader international push toward more burdensome crypto regulation. UnoCrypto reported various such laws.
In early July, Sweden released legislation allowing authorities to seize crypto assets without proof of crime if owners are unable to justify their assets, resulting in $8.4 million seized already.
A few hours later, Hungary also issued new penalties, which would imprison anyone who trades crypto assets without a license for up to two years.
Simultaneously, Algeria adopted a strict position towards crypto owners, trading, and promotion with the passage of Law No. 25-10. Law 25-10 cramps all crypto activity in Algeria and dishonourably makes it a crime to own, trade, or promote crypto assets.
In total, these examples are part of the global pattern of more restrictive regulation of crypto by governments seeking to stop fraud and criminal activity while protecting consumers in the evolving digital asset space.
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