<p><span style="font-weight: 400;">Illinois has passed a new crypto tax into law that some industry advocates have called "the most punitive digital asset tax in the country."</span></p>
<p><span style="font-weight: 400;">On Tuesday, Governor JB Pritzker signed the Digital Asset Tax Act, enacting a 0.2% charge on the value of digital asset transactions or services provided to Illinois customers, as part of the state’s FY2027 budget planning. </span></p>
<p><span style="font-weight: 400;">The tax is set to take effect on Jan. 1, 2027, and will primarily target service providers like exchanges, custodians, and brokers that must now collect and remit the tax, not unlike sales taxes. </span></p>
<p><span style="font-weight: 400;">Several industry groups, including the Crypto Council for Innovation, Digital Chamber, and Illinois Blockchain Association, alongside other crypto representatives, have strongly opposed the law. </span></p>
<p><span style="font-weight: 400;">"This will create an unprecedented tax regime that disproportionately burdens Illinois residents for simply using digital assets and will drive innovation and builders out of the state," the CCI wrote on X. </span></p>
