New laws aimed at strengthening state oversight of cryptocurrency exchanges and ATMs have come into effect in the American state of Illinois. From now on, digital services must adhere to clearly established rules to enhance user protection and reduce the risk of financial crimes.
This is reported by Finway
New Requirements for Cryptocurrency Exchanges and ATM Operators
Illinois Governor J.B. Pritzker has signed two key bills — SB1797 “On Digital Assets and Consumer Protection” and SB2319 “On Digital ATMs.” These regulations empower the Illinois Department of Financial and Professional Regulation (IDFPR) to oversee the activities of exchanges, digital asset companies, and ATM operators.
“While the Trump administration allows ‘crypto-bros’ to write federal policy, Illinois is implementing sound and clear rules to protect investors and consumers,” said Governor Pritzker.
SB1797 requires companies dealing with digital assets to ensure proper financial backing, develop plans to combat fraud, money laundering, and cyber threats. Users will receive protection comparable to that of traditional financial institutions, including transparent disclosure of investment risks, secure asset storage, and basic service guarantees.
SB2319 establishes clear restrictions for ATM operators. From now on, they must register with the IDFPR, report the locations of their devices, adhere to a commission limit of 18%, and implement a daily limit of $2500 for new customers.
Combating Fraud and Protecting Consumers
According to the FBI, residents of Illinois lost $272 million to crypto fraud in 2024 — the most common financial crime in the region. The new laws also guarantee full compensation for victims of fraudulent schemes, which will be implemented immediately upon detection of a violation.
IDFPR Secretary Mario Treto Jr. emphasized the importance of the enacted initiatives:
“These initiatives modernize consumer protection and implement guarantees for all residents of Illinois who use digital asset services. This is a monumental victory that prioritizes people’s safety while paving the way for a more transparent and accessible market,” said IDFPR Secretary Mario Treto Jr.
Additional provisions, including mandatory registration for companies, will come into effect by July 1, 2027. Similar regulatory initiatives are already being considered in the state of Wisconsin, and in Spokane, Washington, authorities have banned ATMs due to a high level of fraud.