Illinois Targets Crypto Transactions
The Illinois General Assembly has passed a massive $56 billion state budget that includes a controversial 0.2% tax on digital asset transactions.
The measure, tucked into the Digital Asset Privilege Tax Act, mandates that brokers facilitate the tax collection. For those failing to comply, the consequences are severe, including potential Class 3 felony charges.
The state anticipates generating $60 million in revenue from this new fiscal policy.
«No other state has imposed a similar tax, and the lack of stakeholder engagement surrounding this proposal raises significant concerns,» noted a representative from The Digital Chamber.
Regulatory Risks and Compliance
Industry advocates, including the Illinois Blockchain Association, argue that burying such a significant policy change within a 1,624-page budget document is an attempt to bypass public scrutiny. Brokers operating within the state now face:
- Strict registration requirements for all digital asset entities.
- Potential prison sentences of two to five years for non-compliance.
- Fines reaching $25,000 per violation.
FAQ
- What is the new tax rate? The state has proposed a 0.2% tax on crypto transactions.
- Who is responsible for collection? The registered digital asset broker facilitating the sale.
- Is this law final? It awaits the signature of Governor JB Pritzker.
