Illinois Crypto Transaction Tax Proposal Sparks Industry Concerns

The cryptocurrency industry is facing a new challenge in the United States with Illinois' proposed 0.2% crypto transaction tax.

Introduced as part of the state budget package, the Digital Asset Privilege Tax Act would require digital asset brokers operating within the state to collect a 0.2% tax on all cryptocurrency transactions.

The tax is designed to apply directly to transactions themselves, regardless of whether users made a profit or incurred a loss.

Industry organizations and blockchain advocates have pushed back against the proposal, arguing that it was introduced without public consultation and could create significant compliance burdens for businesses operating in the state.