Crypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budget
Illinois has introduced a new 0.2% tax on digital asset business activities, including the exchange, transfer, or storage of crypto assets. The tax, which takes effect in 2027, has drawn sharp criticism from industry groups who argue it unfairly targets the crypto sector.
Why it matters
This legislation sets a controversial precedent for state-level taxation of digital assets, potentially impacting the operational costs of crypto firms and the accessibility of services for residents.
The law enacts a 0.2% tax on "receiving any digital asset business activity," according to the text of the bill , which defined digital asset business activity as "any single occurrence of exchanging, transferring or storing a digital asset as part of a business or on behalf of a customer."
The article reports on the industry's reaction and the legislative facts without taking a stance on the tax's validity.
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