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Illinois Enacts Laws to Strengthen Oversight of Crypto Exchanges and ATMs

Illinois Enacts Laws to Strengthen Oversight of Crypto Exchanges and ATMs

Governor J.B. Pritzker signs two landmark laws making Illinois the first Midwest state with comprehensive crypto consumer protections amid record fraud losses and rising ATM-related scams.

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Fact Check
The statement is strongly supported by a recent Chicago Sun-Times article (Source 4) which explicitly reports that Governor Pritzker has signed laws to regulate cryptocurrency, including a mention of crypto ATMs. While several other sources refer to proposed bills, this source confirms their enactment. This is further corroborated by an Illinois Department of Financial and Professional Regulation fact sheet (Source 12) detailing the 'Digital Assets Regulation Act'.
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Summary

Illinois Governor J.B. Pritzker signed the Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) into law, marking the first comprehensive crypto safeguard package in the Midwest. SB1797 grants state regulators authority over crypto exchanges and wallet providers, requiring cybersecurity measures, anti-fraud policies, and customer service standards. SB2319 mandates registration for ATM operators, caps fees at 18%, limits new customers to $2,500 in daily transactions, and requires full refunds to scam victims. Illinois residents lost $272 million to crypto fraud in 2024, with 4,657 complaints, ranking fifth nationally. The laws follow rising ATM fraud nationwide, with FinCEN reporting a 99% surge in crypto-kiosk-related complaints last year. Some provisions take effect immediately, full compliance is due by July 1, 2027.

Terms & Concepts
  • Digital Assets and Consumer Protection Act: Illinois legislation designed to regulate cryptocurrency businesses, enhance cybersecurity, and safeguard consumers in the state’s digital asset market.
  • Digital Asset Kiosk Act: An Illinois law regulating cryptocurrency ATM operations, requiring operator registration, transaction fee caps, transaction limits, and mandatory refunds to scam victims.
  • Cryptocurrency Exchange: A platform that facilitates the buying, selling, and trading of cryptocurrencies, often subject to regulatory oversight for security and compliance.