Gov. Pritzker Signs Landmark Laws to Regulate Illinoisâ Digital Currency Industry and Crypto ATMs
Taking aim at federal inaction and crypto hype, Illinois adopts robust consumer protections amid surge in scams
By Frank Main and Tom Schuba
Chicago Sun-Times | August 19, 2025
In a decisive move to regulate an often chaotic and risky sector, Governor J.B. Pritzker signed two groundbreaking bills into law Tuesday aimed at imposing stricter controls and consumer safeguards on Illinoisâ burgeoning digital currency industry and the widespread use of cryptocurrency kiosks.
Tackling Crypto Scams and Crime
The new laws come in response to alarming reports of scams and criminal activity linked to crypto ATMsâmachines that convert cash to cryptocurrency and vice versaâwhich have proliferated in convenience stores, gas stations, and currency exchanges across Chicago and the state.
Earlier this year, a Chicago Sun-Times investigation revealed that over 1,000 crypto kiosks operate locally, many becoming hubs for laundering illicit drug revenues and facilitating scams that fleece unwitting users of often untraceable money. For example, a suburban man lost more than $15,000 after falling victim to an email impersonating a sheriffâs office demanding payment related to jury duty. Another Chicago woman was defrauded out of her life savings by a fake romantic interest facilitated through online conversations.
New Regulatory Oversight and Consumer Protections
One of the laws grants the Illinois Department of Financial and Professional Regulation (IDFPR) sweeping authority to regulate digital asset exchanges and crypto businesses akin to the oversight applied to traditional financial institutions. These businesses will now be required to maintain sufficient operating capital and implement anti-fraud and anti-money laundering strategies.
The legislation explicitly targets crypto kiosks by capping withdrawal and transaction amounts at $2,500 daily for new users and limiting transaction fees to a maximum of 18%. Critically, new customers who fall victim to fraud at these kiosks can receive full refundsâa vital safeguard in an industry often criticized for its lack of consumer recourse.
Governor Pritzker underscored the contrast between Illinoisâ approach and the federal governmentâs, saying, âWhile the Trump administration is letting crypto âbrosâ write federal policy, Illinois is implementing common sense protections for investors and consumers.â
Legislators Emphasize Consumer Empowerment
Senator Laura Ellman (D-Naperville), a sponsor of the legislation, emphasized the urgent need for these protections. âBasic consumer protections in the cryptocurrency world are lacking,â Ellman said. âThis measure addresses areas in the virtual currency market vulnerable to fraud and empowers Illinois consumers to make informed investments.â
Addressing a Boomingâand RiskyâIndustry
Illinoisâ crypto market continues to expand rapidly despite regulatory ambiguity, attracting investors and users enticed by cryptocurrencyâs potential, but also scammers exploiting the industryâs current gaps. The new laws aim to curtail illicit activities and restore trust among consumers while enabling legitimate businesses to operate responsibly.
For many Chicago residents, the laws come as welcome relief amid stories of financial ruin caused by crypto-related fraud and exploitation. By introducing clear regulatory frameworks and consumer protections, Illinois positions itself as a leader among states confronting the challenges posed by digital currencies.
Looking Ahead
The IDFPR will soon begin enforcing these regulations, marking a significant milestone in the state’s efforts to ensure that the digital currency ecosystem operates fairly and transparently. Meanwhile, advocates hope that Illinoisâ example will prompt other states and the federal government to follow suit and impose similar measures to protect consumers in the digital economy.
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