Illinois General Assembly - Full Text of SB3765
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Full Text of SB3765  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 2/9/2024, by Sen. Laura Ellman


103SB3666, Art. 25 heading new
103SB3666, 25-1 new
103SB3666, 25-5 new
103SB3666, 25-10 new
103SB3666, 25-15 new
103SB3666, 25-20 new
103SB3666, 25-25 new
103SB3666, 25-30 new

    If and only if Senate Bill 3666 of the 103rd General Assembly becomes law, amends the Digital Assets Regulation Act. Provides that an operator shall not accept or dispense more than $1,000 or equivalent monetary value in a day from or to a customer via a digital asset kiosk. Sets forth provisions concerning customer disclosures, reporting physical addresses, and implementation of the provisions. Effective immediately or on the date Senate Bill 3666 of the 103rd General Assembly takes effect, whichever is later.

LRB103 39023 RTM 69160 b





SB3765LRB103 39023 RTM 69160 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. If and only if Senate Bill 3666 of the 103rd
5General Assembly becomes law, then the Digital Assets
6Regulation Act is amended by adding Article 25 as follows:
7    (103SB3666, Art. 25 heading new)
ARTICLE 25. Digital Asset Kiosks

9    (103SB3666, 25-1 new)
10    Sec. 25-1. References to Article. This Article may be
11referred to as the Digital Asset Kiosks Law.
12    (103SB3666, 25-5 new)
13    Sec. 25-5. Definitions. As used in this Article:
14    "Charges" means:
15        (1) fees or expenses paid by the customer; and
16        (2) the difference between the market price of the
17    digital asset and the price of the digital asset charged
18    to the customer.
19    "Digital asset kiosk" means an automated teller machine
20that facilitates the buying, selling, or exchanging of digital
21assets for fiat currency or other digital assets.



SB3765- 2 -LRB103 39023 RTM 69160 b

1    "Registered digital asset exchange" means a digital asset
2exchange that is registered in this State pursuant to the
3Digital Assets Regulation Act and that is neither an operator
4nor controlled by the operator involved in a digital asset
5kiosk transaction.
6    "Operator" means a person who owns, operates, or manages a
7digital asset kiosk located in this State.
8    "Market price of the digital asset" means the current
9market price of a particular digital asset publicly quoted on
10a registered digital asset exchange for a particular time
11specified in this Article, subject to any rules adopted by the
13    (103SB3666, 25-10 new)
14    Sec. 25-10. Daily transaction limit. An operator shall not
15accept or dispense more than $1,000 or equivalent monetary
16value in a day from or to a customer via a digital asset kiosk.
17    (103SB3666, 25-15 new)
18    Sec. 25-15. Customer charges limit. An operator may not
19directly or indirectly collect charges from a customer related
20to a single digital asset kiosk transaction that exceeds the
21greater of the following:
22    (1) $5; or
23    (2) 15% of digital assets involved in the transaction
24    according to the market price of the digital asset at the



SB3765- 3 -LRB103 39023 RTM 69160 b

1    time the customer initiates the transaction.
2    (103SB3666, 25-20 new)
3    Sec. 25-20. Customer disclosures.
4    (a)(1) Before engaging in each digital asset kiosk
5transaction with a customer, an operator shall provide a
6written disclosure, in English and in the same language
7principally used by the operator to advertise, solicit, or
8negotiate with a customer, containing the terms and conditions
9of the transaction that include, at a minimum, all of the
11        (A) The amount of the digital assets involved in the
12    transaction.
13        (B) The amount, in United States dollars, of any
14    charges collected by the operator.
15        (C) The United States dollar price of the digital
16    assets that is charged to the customer and the United
17    States dollar market price of the digital assets.
18        (D) If an operator does not provide a method to
19    reverse or refund a transaction, a warning written
20    prominently in bold type stating the following: "Warning:
21    Losses due to fraudulent or accidental transactions may
22    not be recoverable and transactions are irreversible."
23    (2) The disclosures required by this subsection shall be
24clear and conspicuous and provided separately from any other
25disclosure provided by the operator.



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1    (b) An operator shall provide a customer with a receipt
2for any transaction made at the operator's digital asset kiosk
3that includes all of the following information:
4        (1) The name of the customer.
5        (2) The date and time of the transaction.
6        (3) The name and contact information of the operator.
7        (4) The amount of the digital assets involved in the
8    transaction.
9        (5) The amount of United States dollars or other fiat
10    currency involved in the transaction.
11        (6) The amount, in United States dollars, of any
12    charges collected by the operator in relation to the
13    transaction.
14        (7) The amount, in United States dollars, of any
15    spread between the United States dollar price of the
16    digital asset that is charged to the customer and the
17    United States dollar market price of the digital asset.
18        (8) The name of the registered digital asset exchange
19    that the operator used to calculate the spread described
20    in paragraph (7).
21    (103SB3666, 25-25 new)
22    Sec. 25-25. Reporting physical addresses.
23    (a) An operator shall provide to the Department a list of
24all physical addresses of digital asset kiosks that the
25operator owns, operates, or manages in this State, in a form



SB3765- 5 -LRB103 39023 RTM 69160 b

1prescribed by the Department.
2    (b) An operator shall provide the Department with updates
3to the list required by subsection (a) of this Section within
430 days of any changes in a form prescribed by the Department.
5    (c) The Department shall make the list required by
6subsection (a) of this Section and contact information of each
7operator available to the public on the Department's website.
8    (103SB3666, 25-30 new)
9    Sec. 25-30. Implementation.
10    (a) An operator shall comply with the Digital Assets
11Regulation Act to the extent that the operator engages in
12digital asset business activity.
13    (b) If an operator does not engage in digital asset
14business activity but allows or facilitates another person to
15engage in digital asset business activity via a digital asset
16kiosk that is owned, operated, or managed by the operator, the
17operator shall do all of the following:
18        (1) On or after July 1, 2026, ensure that the person
19    engaging in the digital asset business activity via the
20    digital asset kiosk is registered pursuant to the Digital
21    Assets Regulation Act or otherwise exempt from
22    registration.
23        (2) Ensure that any charges collected from a customer,
24    whether collected by the operator, a person engaging in
25    digital asset business activity via the digital asset



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1    kiosk, or both, comply with the limits provided by Section
2    25-15.
3        (3) Comply with all other provisions of this Article.
4    (c) In addition to the fees and charges collected under
5Section 1-20 of the Digital Assets Regulation Act, the
6Department shall charge and collect fees from operators, which
7shall be nonrefundable unless otherwise indicated, as follows:
8        (1) Each operator shall pay $150 for each hour or part
9    thereof for each examiner or staff assigned to the
10    supervision of such operator plus actual travel costs for
11    any examination of digital asset kiosk activity pursuant
12    to this Article.
13        (2) On or after January 1, 2026, each operator shall
14    pay an annual registration fee to the Department of
15    $35,000 for each digital asset kiosk located in this
16    State.
17        (3) Beginning one year after the effective date of
18    this Article, the Department may, by rule, amend the fees
19    set forth in this subsection in accordance with the
20    Digital Assets Regulation Act.
21    All moneys collected or received by the Department under
22this Article shall be deposited into the Consumer Protection
23Fund pursuant to Section 1-20 of the Digital Assets Regulation
25    (d) On or after January 1, 2026, a violation of this
26Article is enforceable as a violation of Article 5 of the



SB3765- 7 -LRB103 39023 RTM 69160 b

1Digital Assets Regulation Act.
2    Section 99. Effective date. This Act takes effect upon
3becoming law or on the date Senate Bill 3666 of the 103rd
4General Assembly takes effect, whichever is later.