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Illinois Enacts Crypto Kiosk Protections, Sets 2027 Digital-Asset Licensing

New safeguards take effect for kiosk users, including anti-fraud controls plus refund rights for scam victims.

Overview

  • Governor J.B. Pritzker signed SB 1797 and SB 2319, expanding IDFPR authority over digital asset firms and setting immediate rules for kiosks.
  • Kiosk transactions now face daily caps of $2,500 for new customers and $10,500 for existing customers, with fees limited to the greater of $5 or 18% of the transaction.
  • Operators must maintain written anti-fraud policies, use blockchain analytics to block suspicious wallets, and provide live customer support during kiosk hours.
  • SB 2319 grants refund rights for scam victims, including full refunds for up to three fraudulent transactions for new users when timely reported with a police or government report.
  • SB 1797 defers licensing to 2027 while requiring disclosures, outage histories, clear insurance statements, and segregation of customer assets, with penalties up to $100,000 per day for unlicensed activity.