SPRINGFIELD – Leading the charge on protecting consumers across the state, State Senator Laura Ellman passed legislation in the Senate on Thursday that will increase protections for cryptocurrency kiosk users.

“This legislation ensures that Illinois residents are protected through strong scam prevention measures, such as placing disclosures on kiosks and putting safeguards in place to prevent new users from losing their life savings,” said Ellman (D-Naperville). “We’re taking a responsible step to put consumer protection first in the state.”

Illinois currently lacks a clear regulatory system for digital asset businesses and does not provide anti-scam protections for consumers. Seeing a need for digital asset regulations in the state, Ellman is leading a measure that would require virtual currency kiosk operators to register with the Illinois Department of Financial and Professional Regulation.

To prevent consumer fraud, the bill would require kiosk operators to be transparent about the material risks involved with their products, services, and virtual currency by providing clear disclosures to customers. It also requires virtual currency kiosk operators to have a toll-free customer service number, establish anti-scam policies, and designate consumer protection officers to enforce these policies. Additionally, it requires kiosk operators to refund fraudulent transactions for new customers, and refund existing customers for the full amount of all transaction fees.

“Basic consumer protections in the cryptocurrency space are lacking and regulatory frameworks are crucial for holding operators accountable and keeping consumer dollars secure," said Ellman. “This measure addresses areas in the virtual currency market vulnerable to fraud and empowers Illinois consumers to make informed investments.”

Senate Bill 2319 passed the Senate on Thursday.