ILLINOIS (WEHT) – On Tuesday, the Illinois Department of Financial and Professional Regulation (IDFPR) announced two bills meant to protect Illinois residents from financial fraud and abuse and establish regulatory oversight of cryptocurrencies and the broader digital asset marketplace.
DFPR Regulatory Innovation Officer David DeCarlo said, “You can’t scroll through your phone these days without seeing a headline about the latest tech scam or cryptocurrency collapse wiping out someone’s savings. Robust and nimble financial regulation is essential for defending Illinois residents against fraud and abuse, protecting legitimate businesses from unfair competition, and promoting responsible innovation in our state.”
A news release says the Fintech-Digital Asset Bill requires digital asset exchanges and other digital asset businesses to get a license from IDFPR to operate in Illinois. Officials say the bill also establishes customer protections, including investment disclosures, customer asset safeguards and customer service standards.
IDFPR says the bill requires companies to have plans and procedures for addressing cybersecurity, business continuity, fraud and money laundering, as well as sufficient financial resources to effectively conduct their business in Illinois.
Officials note the bill replaces the Transmitters of Money Act with the Money Transmission Modernization Act, thereby harmonizing state licensing, regulation and supervision of money transmitters operating across state lines. The news release says the bill also allows for the creation of trust companies for the special purpose of acting as a fiduciary to safeguard customers’ digital assets.
Both bills can be viewed below.