Illinois Caps Crypto ATM Fees, Sets $2.5K Limit for New Users

Illinois Governor JB Pritzker signed two cryptocurrency regulation bills on August 18, establishing state oversight of digital asset firms and limiting crypto ATM operations.

The Digital Assets and Consumer Protection Act gives the Illinois Department of Financial and Professional Regulation (IDFPR) authority to supervise crypto exchanges and related businesses. Companies must register with IDFPR by July 1, 2027, maintain adequate financial resources, and implement cybersecurity and fraud controls. The law requires firms to provide customer disclosures and service standards similar to those of traditional financial institutions.

The Digital Asset Kiosk Act targets crypto ATM operators with new registration requirements and transaction limits. Operators must register with IDFPR, file location reports, and cap fees at 18%. New customers face a $2,500 daily transaction limit. First-time customers who fall victim to scams can receive full refunds from kiosk operators.

The legislation responds to growing crypto fraud in Illinois. FBI data shows state residents reported $272 million in cryptocurrency fraud losses during 2024. The governor’s office noted that crypto ATMs frequently target first-time users in scam schemes.

Both laws include immediate consumer protections, though the full registration framework phases in over time. The Digital Assets and Consumer Protection Act includes exemptions designed to support technology development while establishing regulatory guardrails.

Kiosk operators must provide customer disclosures and receipts showing the dollar value of assets exchanged and fees collected. The IDFPR will oversee compliance with the new requirements.

Illinois is implementing common-sense protections for investors and consumers. We won’t tolerate taking advantage of our people and their hard-earned assets,

Pritzker said.

IDFPR Secretary Mario Treto Jr. described the laws as modernizing consumer protection and implementing safeguards for Illinois residents who use digital asset services.

The Digital Asset Kiosk Act specifically addresses retail kiosks, which the state identifies as common targets for fraudulent schemes involving new cryptocurrency users. The comprehensive licensing framework under the Digital Assets and Consumer Protection Act aligns digital asset business oversight with existing banking and securities regulations.