Illinois Governor J.B. Pritzker signed legislation to impose a 0.2% tax on digital asset transactions and tighten crypto-broker registration - despite the cryptoindustry’s objections. The new regulations, which will come into effect on January 1, 2027, are included in the state budget for next year of $56 billion and should bring about $60 million to the treasury. User tax will be levied on exchange, transfer and storage of cryptoassets.

The law has been sharply criticized by three industry organizations: the Crypto Council for Innovation, the Illinois Blockchain Association, and The Digital Chamber. They warned that the tax would increase user costs and crowd out developers to more loyal jurisdictions. Nevertheless, the authorities impose strict registration rules. Brokers, including non-state traders, are required to be recorded by the State Revenue Department if their annual revenues from clients in Illinois exceed $100,000. The transaction is considered a business activity in the state if the customer’s location, account information, mailing address, or IP address indicates that Illinois is the primary use of cryptoassets. Brokers must also submit monthly activity reports. Registration is valid for one year and automatically renewed unless the broker cancels it or the authorities revoke it.

The move was a continuation of the state’s policy of tight control: previously, the state had proposed legislation that would allow courts to overturn blockchain transactions by court order, with fines ranging from $5,000 to $10,000 for violations.