Key facts
- Illinois will enact a 0.2% tax on digital asset transactions.
- The digital asset transaction tax will be effective January 1, 2027.
- The tax includes transfers between personal wallets.
- Illinois Governor JB Pritzker signed the budget bill into law.
- Industry groups have criticized the crypto transaction tax.
- Illinois Governor JB Pritzker is seeking upfront age verification for social media.
- Upfront age verification is for social media platforms at sign-up.
- Illinois passed the Children's Online Social Media Safety Act.
Illinois is set to impose a 0.2% tax on digital asset transactions, including transfers between personal wallets, beginning January 1, 2027. Governor JB Pritzker signed the budget bill that enacts this new tax, which has already garnered criticism from various industry groups concerned about its implications. This move positions Illinois as one of the states introducing specific taxation on cryptocurrency and other digital assets.
In parallel, Governor Pritzker is actively pursuing enhanced online safety measures for minors. He is advocating for social media platforms to implement upfront age verification for users at the point of sign-up. This initiative is a direct follow-up to the state's recent passage of the Children's Online Social Media Safety Act, signaling a broader regulatory focus on digital interactions involving young people.