Illinois Governor J.B. Pritzker has signed two new laws aimed at protecting consumers from fraudulent activities in the cryptocurrency market. Illinois becomes the first state in the Midwest to have comprehensive protective measures.
New legislation
The Consumer Protection and Digital Asset Act (#SB1797 ): This act empowers the Department of Finance and the Illinois Professional Regulation to oversee cryptocurrency exchanges and wallets. Companies must implement security and anti-fraud measures, along with basic customer service standards.
The Digital Asset Kiosk Act (#SB2319 ): This act establishes strict regulations for cryptocurrency ATMs, including registration requirements with the regulatory authority, limiting transaction fees to 18%, restricting daily transactions to $2,500 for new customers, and requiring refunds for victims of fraud.
Impact and context
New laws were enacted in the context of rising cryptocurrency fraud. Last year, residents #Illinois lost over $272 million due to cryptocurrency-related scams, making it the most common form of financial crime in the state.
Governor Pritzker emphasized that these laws are necessary to protect the public from the laxity of federal regulation. Illinois taking the lead in establishing clear rules demonstrates that states are proactively creating a safer environment for cryptocurrency users, amidst ongoing debates and refinements of federal regulations.
