Illinois General Assembly - REGULATION - FINANCIAL REGULATION

(205 ILCS 732/1)

Sec. 1. Short title. This Act may be cited as the Digital Asset Kiosks Act.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/5)

Sec. 5. Purpose and construction. The purpose of this Act is to protect the People of Illinois against the fraud and scams in digital asset kiosk transactions by providing necessary registration requirements, disclosures, and other safeguards for customers. This Act shall be liberally construed to effectuate its purpose.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/10)

Sec. 10. Definitions. As used in this Act:

"Affiliate" means any person that controls, is controlled by, or is under common control with another person. As used in this paragraph, "control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person.

"Applicant" means a person that applies for registration under this Act.

"Bank" means a bank, savings bank, savings-and-loan association, savings association, or industrial loan company chartered under the laws of this State or any other state or under the laws of the United States.

"Blockchain analytics" means the analysis of data from blockchains or public distributed ledgers, including associated transaction information.

"Blockchain analytics software" means a software service that uses blockchain analytics data to provide risk-specific information about digital asset wallet addresses, among other things.

"Charges" means: (i) fees or expenses paid by the customer; and (ii) the difference between the market price of the digital asset and the price of the digital asset charged to the customer.

"Confidential supervisory information" means information or documents obtained by employees, agents, or representatives of the Department in the course of any examination, investigation, audit, visit, registration, certification, review, licensing, or any other regulatory or supervisory activity pursuant to this Act, and any record prepared or obtained by the Department to the extent that the record summarizes or contains information derived from any report, document, or record described in this Act.

"Credit union" means a credit union chartered under the laws of this State or any other state or under the laws of the United States.

"Department" means the Department of Financial and Professional Regulation.

"Digital asset" means a digital representation of value that is used as a medium of exchange, unit of account, or store of value and that is not fiat currency, whether or not denominated in fiat currency. "Digital asset" does not include any of the following: (i) a digital representation of value which a merchant grants, as part of an affinity or rewards program, and that cannot be taken from or exchanged with the merchant for fiat currency or a digital asset; (ii) a digital representation of value that is issued by or on behalf of a game publisher, used solely within a gaming platform, has no market or application outside of such gaming platform, and cannot be converted into, or redeemed for, fiat currency or digital assets; or (iii) a digital representation of value that is used as part of prepaid cards.

"Digital asset exchange" means an exchange that facilitates the buying, selling, or exchanging of digital assets for fiat currency or other digital assets that is licensed to conduct business in New York as a Virtual Currency Business Activity licensee or in California under the Digital Financial Assets Law.

"Digital asset kiosk" means an automated teller machine that facilitates the buying, selling, or exchanging of digital assets for fiat currency or other digital assets.

"Digital asset kiosk operator" means a registrant or a person required to register pursuant to this Act.

"Existing customer" means a person who transacts with the operator following the new customer period. For the avoidance of doubt, "existing customer" includes any customer that is not a new customer.

"Federally insured depository institution" shall mean an insured depository institution as defined by Section 3(c)(2) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c)(2), as amended, or an insured credit union as defined by Section 101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7), as amended.

"Fiat currency" means a medium of exchange or unit of value issued by the United States or a foreign government and that is designated as legal tender in its country of issuance.

"Insolvent" means any of the following: (i) having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute, (ii) being unable to pay debts as they become due, and (iii) being insolvent within the meaning of federal bankruptcy law.

"Market price of the digital asset" means the current market price of a particular digital asset publicly quoted on a digital asset exchange for a particular time, subject to any rules adopted by the Department.

"New customer" means a person who has never previously transacted with the operator. The new customer shall remain defined as such during the earlier of: (i) the customer's first 3 transactions after opening an account with the operator, or (ii) 7 days after opening an account with the operator.

"Operator" means a person who owns, operates, or manages a digital asset kiosk located in this State.

"Person" means, without limitation, any individual, corporation, business trust, estate, trust, partnership, proprietorship, syndicate, limited liability company, association, joint venture, government, governmental subsection, agency or instrumentality, public corporation or joint-stock company, or any other organization or legal or commercial entity.

"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

"Registrant" means a person registered under this Act.

"Request for assistance" means all inquiries, complaints, account disputes, and requests for documentation a digital asset kiosk operator receives from residents.

"Responsible individual" means an individual who has direct control over, or significant management, policy, or decision-making authority with respect to, a person's digital asset kiosk business activity in this State.

"Secretary" means the Secretary of Financial and Professional Regulation and any authorized representative of the Secretary.

"Service provider" means any person that provides a material service to a digital asset kiosk operator in connection with the offering or provision by that operator of a digital asset business activity in this State, including a person that either (i) participates in designing, operating, or maintaining the digital asset business activity, or (ii) processes transactions relating to a digital asset kiosk transaction then unknowingly or incidentally transmitting or processing financial data in a manner that the data is undifferentiated from other types of data of the same form as the person transmits or processes.

"Tangible net worth" means the aggregate assets of a registrant, excluding all intangible assets, less liabilities, as determined in accordance with the United States' generally accepted accounting principles.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/15)

Sec. 15. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/20)

Sec. 20. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/25)

Sec. 25. Daily transaction limit.

(a) A digital asset kiosk operator shall not accept or dispense more than $2,500 or equivalent monetary value in a day from or to the same new customer through a digital asset kiosk.

(b) A digital asset kiosk operator shall not accept or dispense more than $10,500 or the equivalent monetary value in a day from or to any existing customer through a digital asset kiosk.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/30)

Sec. 30. Customer charges limit. A digital asset kiosk operator may not, directly or indirectly, collect charges from a customer related to a single digital asset kiosk transaction that exceeds the greater of the following:

(1) $5; or

(2) 18% of digital assets involved in the transaction

according to the market price of the digital asset at the time the customer initiates the transaction.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/35)

Sec. 35. Customer disclosures.

(a) Before engaging in each digital asset kiosk transaction with a customer, a digital asset kiosk operator shall provide written disclosure, in English and in the same language principally used by the digital asset kiosk operator to advertise, solicit, or negotiate with a customer, containing the terms and conditions of the transaction that include, at a minimum, all of the following:

(1) The amount of the digital assets involved in the

transaction.

(2) The amount, in United States dollars, of any

charges collected by the operator.

(3) The United States dollar price of the digital

assets that is charged to the customer and the United States dollar market price of the digital assets.

(4) All procedures for providing refunds as required

by Section 45 of this Act and other methods to reverse or refund a transaction offered by the digital asset kiosk operator.

(5) A warning written prominently in bold type

stating the following: "Warning: Losses due to fraudulent or accidental transactions may not be recoverable and transactions are irreversible except as otherwise set forth in this disclosure.".

(6) Digital assets are not legal tender, are not

backed by the government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections.

(7) Legislative and regulatory changes or actions at

the State, federal, or international level may adversely affect the use, transfer, exchange, and value of digital assets.

(8) Some digital asset transactions shall be deemed

to be made when recorded on a public ledger, which is not necessarily the date or time that the customer initiates the transaction.

(9) The value of a digital asset may be derived from

the continued willingness of market participants to exchange fiat currency for digital assets, which may result in the potential for permanent and total loss of value of a particular digital asset should the market for that digital asset disappear.

(10) There is no assurance that a person who accepts

a digital asset as payment today will continue to do so in the future.

(11) The volatility and unpredictability of the price

of a digital asset relative to fiat currency may result in significant loss over a short period of time.

(12) The nature of digital assets may lead to an

increased risk of fraud or cyberattack.

(13) The nature of digital assets means that any

technological difficulties experienced by the digital asset kiosk operator may prevent access or use of a customer's digital assets.

(14) Any bond or trust account maintained by the

digital asset kiosk operator for the benefit of its customers may not be sufficient to cover all losses incurred by customers.

(b) The disclosures required by this Section shall be clear and conspicuous and provided separately from any other disclosure provided by the digital asset kiosk operator.

(c) A digital asset kiosk operator shall provide a customer with a receipt for any transaction made at the digital asset kiosk operator's digital asset kiosk that includes all of the following information:

(1) The name of the customer.

(2) The date and time of the transaction.

(3) The name and contact information of the digital

asset kiosk operator.

(4) The amount of the digital assets and any digital

asset addresses involved in the transaction.

(5) The amount of United States dollars or other fiat

currency involved in the transaction.

(6) The amount, in United States dollars, of any

charges collected by the digital asset kiosk operator in relation to the transaction.

(7) The amount, in United States dollars, of any

spread between the United States dollar price of the digital asset that is charged to the customer and the United States dollar market price of the digital asset.

(8) All procedures for providing refunds as required

by this Act and any other methods to reverse or refund the transaction offered by the digital asset kiosk operator.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/40)

Sec. 40. Reporting physical addresses.

(a) A digital asset kiosk operator shall provide to the Department a list of all physical addresses of digital asset kiosks that the digital asset kiosk operator owns, operates, or manages in this State, in a form prescribed by the Department.

(b) A digital asset kiosk operator shall provide the Department with updates to the list required by subsection (a) of this Section within 30 days after any changes in a form prescribed by the Department.

(c) The Department shall make the list required by subsection (a) of this Section and contact information of each digital asset kiosk operator available to the public on the Department's website.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/41)

Sec. 41. Customer service. All digital asset kiosk operators performing business in this State must provide live customer service during kiosk operating hours. The customer service toll-free number must be displayed on the digital asset kiosk or on the digital asset kiosk screen.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/42)

Sec. 42. Prevention of fraudulent activity. All digital asset kiosk operators must take reasonable steps to detect and prevent fraud, including establishing and maintaining a written anti-fraud policy.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/43)

Sec. 43. Blockchain analytics. All digital asset kiosk operators must use blockchain analytics software to help prevent transactions to wallets known to be affiliated with fraudulent activity at the time of a transaction and to detect transaction patterns indicative of fraud or other illicit activities.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/44)

Sec. 44. Law enforcement access to investigative information. All digital asset kiosk operators performing business in this State must provide a dedicated communications line for relevant government agencies through a posted U.S. phone number or email address. This dedicated line shall facilitate law enforcement and regulatory agency communications with the digital asset kiosk operator in the event of a fraud report from a customer. The communications line must be frequently monitored.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/45)

Sec. 45. Refunds.

(a) A digital asset kiosk operator must issue a refund to a new customer for the full amount for up to 3 fraudulent transactions made within the new customer period, upon request of the customer. To receive a refund under this subsection, a new customer must:

(1) have been fraudulently induced to engage in a

transaction or transactions involving the digital asset kiosk;

(2) within 30 days after the last transaction to

occur during the new customer period, contact the digital asset kiosk operator to inform them of the fraudulent nature of the transaction or transactions at issue; and

(3) within 60 days after the last transaction to

occur during the new customer period, submit a police report or government agency report of the transaction or transactions to the digital asset kiosk operator.

(b) A digital asset kiosk operator must issue a refund to an existing customer for the full amount of all charges upon request of an existing customer. To receive a refund under this subsection, an existing customer must:

(1) have been fraudulently induced to engage in a

transaction or transactions involving the digital asset kiosk;

(2) within 30 days after the transaction or

transactions at issue, contact the digital asset kiosk operator to inform them of the fraudulent nature of the transaction or transactions at issue; and

(3) within 60 days after the transaction or

transactions at issue, submit a police report or government agency report of the transaction or transactions to the digital asset kiosk operator.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/50)

Sec. 50. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/55)

Sec. 55. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/60)

Sec. 60. (Repealed.)

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/65)

Sec. 65. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/70)

Sec. 70. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/75)

Sec. 75. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/85)

Sec. 85. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/90)

Sec. 90. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/95)

Sec. 95. Civil action. A claim of violation of Sections 25, 30, and 45 of this Act may be asserted in a civil action. Additionally, a prevailing resident may be awarded reasonable attorney's fees and court costs.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/100)

Sec. 100. Rulemaking.

(a) The Department may adopt rules to implement the provisions of this Act, including, but not limited to:

(1) rules in connection with the activities of

digital asset kiosk operators as may be necessary and appropriate for the protection of persons in this State;

(2) rules as may be necessary and appropriate to

define improper or fraudulent business practices in connection with the activities of digital asset kiosk operators and digital asset kiosks;

(3) rules that define the terms used in this Act and

as may be necessary and appropriate to interpret and implement the provisions of this Act; and

(4) rules as may be necessary for the implementation,

enforcement and administration of this Act.

(b) The Secretary is hereby authorized and empowered to make specific rulings, demands, and findings that the Secretary deems necessary for the proper conduct of operators.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/105)

Sec. 105. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/110)

Sec. 110. Evasion. An agreement, contract, or transaction that is structured to evade the scope of this Act shall be deemed to fall within the scope of this Act.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/115)

Sec. 115. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/120)

Sec. 120. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/125)

Sec. 125. (Repealed).

(Source: P.A. 104-429, eff. 8-18-25. Repealed internally, eff. 8-18-25.)

(205 ILCS 732/800)

Sec. 800. If and only if Senate Bill 1797 of the 104th General Assembly, as amended by House Amendment No. 1, becomes law, then Sections 15, 20, 50, 55, 60, 65, 70, 75, 85, 90, 105, 115, 120, and 125 of this Act are repealed on the date that Senate Bill 1797 of the 104th General Assembly becomes law.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/900)

Sec. 900. (Amendatory provisions; text omitted).

(Source: P.A. 104-429, eff. 8-18-25; text omitted.)

(205 ILCS 732/997)

Sec. 997. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

(Source: P.A. 104-429, eff. 8-18-25.)

(205 ILCS 732/999)

Sec. 999. Effective date. This Act takes effect upon becoming law.

(Source: P.A. 104-429, eff. 8-18-25.)