In a move that’s sure to make crypto scammers clutch their digital wallets in despair, Illinois’s Democrat Governor JB Pritzker has signed two bills that target Crypto ATMs in the state. Many believe that he’d done this in a slight nod to consumer protection and a not-so-subtle dig at former President Donald Trump’s “crypto bro” fanbase.
In fact he said, “While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers.”
Pritzker’s latest legislative stunt essentially puts a suffocating blanket of regulation on crypto ATMs and exchanges, including 18% ATM fee.
The move also ensures that Illinois won’t be making it to top crypto-friendly states in the U.S. anytime soon.
Axing Crypto ATMs in Illinois
Things are unfortunate for crypto enthusiasts in Illinois.
The Digital Assets and Consumer Protection Act (SB 1797) hands the Illinois Department of Financial and Professional Regulation a shiny new leash to rein in digital asset exchanges.
Crypto companies now face the thrilling prospect of maintaining hefty financial reserves, beefing up cybersecurity, and adopting anti-fraud measures so rigorous they might as well be running a bank.
The Digital Asset Kiosk Act (SB 2319) takes a sledgehammer to crypto ATMs. The act demands operators register with the state, cap transaction fees at a measly 18% and limit new customers to $2,500 daily transactions.
Interestingly, the act also offers full refunds to scam victims.
In fact, Representative Edgar Gonzalez Jr made it sound like charity; that crypto users never asked for.
“The people of Illinois deserve reliable, consistent safeguards,”he said.
With $272 million lost to crypto fraud in Illinois last year, per the FBI, Illinois has decided innovation may not be the solution.
Are Democrats allergic to Crypto?
Democrat Governor Pritzker didn’t miss a chance to throw shade at President Trump while running the red tape across Crypto ATMs.
The governor’s office even pointed fingers at Trump’s April 2025 bill that axed an IRS rule expanding the definition of a broker to include decentralized finance exchanges.
Truthfully, Illinois’ crypto crackdown should come as no surprise, given its history of giving digital assets the cold shoulder.
Earlier this year, the state gleefully shot down House Bill 1844, preventing Illinois from investing in a strategic Bitcoin reserve.
The bill didn’t even make it past committee, proving once again that Democrats would rather watch Bitcoin’s price ticker than invest in it.
Earlier in August New York’s Democrat Assembly member Phil Steck introduced a controversial bill seeking to tax crypto sales and transfers.
Maybe crypto isn’t for everyone.
Others jumping on the “No Crypto ATM’s Please” bandwagon
The global crackdown on crypto ATMs is in full swing.
New Zealand went full authoritarian in July, banning the machines outright for their alleged role in money laundering and criminal financing.
The UK’s not far behind, with regulators seizing seven crypto ATMs and arresting two people in London for daring to operate without their blessing.
Tasmania Police’s Cyber Investigations Unit joined a broader nationwide effort to curb the misuse of cryptocurrency for criminal purposes.
Even Grosse Pointe Farms, a sleepy Michigan town with exactly zero crypto ATMs, got in on the action. They town preemptively passed regulation just in case someone decides to install one and ruin their idyllic suburb.
In a move that literally screams “we’re here to save you from your own financial decisions,” Wisconsin senators in the U.S filed a new bill to regulate crypto ATMs into oblivion. The U.S. Spokane City Council in Washington also unanimously voted in June to ban crypto ATMs across the city.
