Illinois Imposes 0.2% Tax on All Digital Asset Transfers

The state of Illinois has introduced a new tax on digital assets, becoming the first U.S. state to impose a direct transaction-level tax on cryptocurrencies.

The 'Digital Asset Tax' will apply to every crypto transfer, including wallet-to-wallet transfers, cold storage withdrawals, and even reorganizing holdings within the same exchange, at a rate of 0.2% per transaction.

The law's structure has sparked concern among traders, who fear it could set a precedent for other states to follow suit, potentially compressing on-chain activity across the U.S.

MicroStrategy's Michael Saylor has called the tax a 'big mistake' that will drive Bitcoin capital and innovation out of Illinois.