Illinois General Assembly - Bill Status for SB2319

Creates the Virtual Currency Kiosk Consumer Protection Act. Provides that specified information reported to the Department of Financial and Professional Regulation by virtual currency kiosk shall be confidential, except as otherwise provided in the Act. Establishes warning and general terms and conditions disclosure requirements for a virtual currency kiosk operator opening an account for a new customer and prior to entering into an initial transaction for, on behalf of, or with the customer. Requires a receipt to be provided to each customer following a transaction. Requires all virtual currency kiosk operators to have live customer service, as specified; create anti-fraud, enhanced due diligence, and federal and State law compliance policies; designate a compliance officer and a consumer protection officer; and use blockchain analytics software to assist in the prevention of sending purchased virtual currency from a virtual currency kiosk operator to a digital wallet known to be affiliated with fraudulent activity at the time of a transaction; and report the location of each virtual currency kiosk located within this State within 45 days after the end of the calendar quarter. Requires a virtual currency kiosk operator to receive a money transmitter license. Sets forth supervision duties for the Department and the Secretary of Financial and Professional Regulation.

Replaces everything after the enacting clause. Creates the Digital Asset Kiosks Act. Sets forth provisions concerning the general powers and duties of the Department of Financial and Professional Regulation in administering and enforcing registrations for digital asset kiosk operators and transactions. Provides that moneys collected by the Department under the Act shall be deposited into the Digital Asset Kiosk Fund. Establishes transaction and charge limits on digital asset kiosk operators. Requires disclosures for digital asset kiosk operators before engaging in each digital asset kiosk transaction with a customer and requires operators to report the physical location of digital asset kiosks. Requires digital asset kiosk operators to issue refunds for fraudulent transactions at the request of a new customer within the new customer period. Requires digital asset kiosk operators to register with the Department and sets forth provisions concerning renewal and refusal of registration. Establishes surety bond and tangible net worth requirements for registrants. Provides a private right of action for violations of the Act. Exempts specified entities from the requirements of the Act. Provides that, if and only if House Bill 742 of the 104th General Assembly becomes law in the form in which it passed the House on April 10, 2025, then the Digital Asset Kiosks Act is amended by repealing the specified provisions of the Act. Amends the State Finance Act to create the Digital Asset Kiosk Fund. Effective immediately.

In provisions concerning refunds for new customers, provides that, to receive a refund, a new customer must, within 60 days after the last transaction to occur during the new customer period, submit a police report or government agency report of the transaction or transactions (rather than proof of the fraudulent transaction or transactions) to the digital asset kiosk operator. Makes conforming changes to provisions concerning refunds for existing customers. Provides that a claim of violation of specified provisions of the Act (rather than a claim of violation of the Act) may be asserted in a civil action. Provides that a prevailing resident (rather than a prevailing person, other than a digital asset kiosk operator) may be awarded reasonable attorney's fees and court costs.

Removes certain provisions from claims of violation that may be asserted in a civil action. Provides that, if and only if Senate Bill 1797 of the 104th General Assembly, as amended by House Amendment No. 1, becomes law, then specified provisions of the Act are repealed on the date that Senate Bill 1797 of the 104th General Assembly becomes law. Makes a conforming change in provisions amending the State Finance Act.

×