Crypto Industry Criticises Illinois' Proposed 0.2% Tax on Digital Transactions
# Crypto Sector Outraged by Illinois' New Tax on Digital Asset Transactions
The crypto industry is in upheaval over Illinois' newly proposed tax that will affect transactions involving digital assets. This development was introduced in the state's latest budget, which outlines measures that will require individuals and businesses to pay a 0.2% tax on activities related to digital assets, including exchanging, transferring, or holding such assets.
This tax, according to the bill's text, applies to “any single occurrence of exchanging, transferring or storing a digital asset as part of a business or on behalf of a customer.” The measure is considered highly controversial, as it focuses on everyday digital asset users rather than just large businesses or entities profiting from significant gains. The Chicago Crypto Industry Reactors (CCI) expressed concern, stating, “Unlike traditional tax frameworks that are tied to income, gains or profits, this law would impose a 0.2% tax on everyday customers' use of digital asset services.”
Many in the crypto community highlight that there is “effectively no comparable state financial transaction tax imposed on the exchange, transfer or custody of stocks, bonds or derivatives anywhere in the country.” Therefore, they view this tax as a heavy-handed and unfair measure targeting a burgeoning sector of the economy.
This backlash comes at a time when financial figures reveal that “MAGA-backed crypto bros are dumping $7 million” as a response to various challenges within the industry. Opponents argue that this tax could stifle innovation and growth in the state's digital asset market, discouraging investment and participation.
This report is for informational purposes only and is not financial advice.
