Technology

The laws will bolster consumer protections for crypto users and limit withdrawals to $2,500 a day for new users of digital currency kiosks, which have become magnets for scams and drug-dealing.

The Illinois Department of Financial and Professional Regulation, which has been given the power to regulate digital asset exchanges and businesses, will require the crypto industry to comply with protections now in place for consumers of traditional financial services, such as banks.

Crypto businesses will have to keep enough money on hand to operate effectively and have plans to target fraud and money-laundering.

To prevent fraud, the state will cap daily transaction amounts at kiosks at $2,500 for new customers, limit transaction fees at kiosks to 18% and provide full refunds to new customers who get defrauded.

“While the Trump administration is letting crypto ‘bros’ write federal policy, Illinois is implementing common sense protections for investors and consumers,” Pritzker said.

One sponsor of the legislation, state Sen. Laura Ellman, D-Naperville, said basic consumer protections in the cryptocurrency world are lacking.

“This measure addresses areas in the virtual currency market vulnerable to fraud and empowers Illinois consumers to make informed investments,” Ellman said.