SPRINGFIELD – Crypto kiosk scams are on the rise, and fraudsters are targeting consumers using kiosks to steal Illinoisans hard-earned savings. Taking the lead to combat these scammers, State Senator Laura Ellman’s cryptocurrency scam prevention measure, establishing strong protections, has been signed into law.

“With robust scam prevention measures, like posting clear disclosures on kiosks and implementing protections to keep new users from losing out on hundreds of thousands of dollars, this law will ensure cryptocurrency practices follow the same standards statewide,” said Ellman (D-Naperville). “We’re prioritizing consumer protections in Illinois and upholding a clear standard for the future of virtual currency.”

With the growing number of cryptocurrency kiosks across the state, Ellman’s law places vital regulations on digital asset kiosks in Illinois. The law requires virtual currency kiosk operators to register with the Illinois Department of Financial and Professional Regulation by July 1, 2027.

To prevent consumer fraud, the law requires crypto kiosk operators to help mitigate the risks of fraud involved with virtual currency kiosks by posting warnings and clear disclosures about crypto. It also requires virtual currency kiosk operators to have a toll-free customer service number, establish anti-scam policies, and designate consumer protection officers. Additionally, kiosk operators must refund fraudulent transactions for new customers, and refund transaction fees for existing customers.

“In the absence of federal consumer protections in the cryptocurrency space, state regulatory frameworks are one key step toward holding operators responsible for protecting consumer investments,” said Ellman. “This law empowers Illinois consumers to make informed investments by eliminating gray areas in the crypto industry that are susceptible to scams.”

Senate Bill 2319 was signed into law Monday and is effective immediately.