Bill Text: IL SB3765 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB3765 Detail]

Download: Illinois-2023-SB3765-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3765 Introduced 2/9/2024, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED:
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
A BILL FOR
SB3765 LRB103 39023 RTM 69160 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. If and only if Senate Bill 3666 of the 103rd
General Assembly becomes law, then the Digital Assets
Regulation Act is amended by adding Article 25 as follows:
(103SB3666, Art. 25 heading new)
ARTICLE 25. Digital Asset Kiosks
(103SB3666, 25-1 new)
Sec. 25-1. References to Article. This Article may be
referred to as the Digital Asset Kiosks Law.
(103SB3666, 25-5 new)
Sec. 25-5. Definitions. As used in this Article:
"Charges" means:
(1) fees or expenses paid by the customer; and
(2) the difference between the market price of the
digital asset and the price of the digital asset charged
to the customer.
"Digital asset kiosk" means an automated teller machine
that facilitates the buying, selling, or exchanging of digital
assets for fiat currency or other digital assets.

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"Registered digital asset exchange" means a digital asset
exchange that is registered in this State pursuant to the
Digital Assets Regulation Act and that is neither an operator
nor controlled by the operator involved in a digital asset
kiosk transaction.
"Operator" means a person who owns, operates, or manages a
digital asset kiosk located in this State.
"Market price of the digital asset" means the current
market price of a particular digital asset publicly quoted on
a registered digital asset exchange for a particular time
specified in this Article, subject to any rules adopted by the
Department.
(103SB3666, 25-10 new)
Sec. 25-10. Daily transaction limit. 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.
(103SB3666, 25-15 new)
Sec. 25-15. Customer charges limit. An operator may not
directly or indirectly collect charges from a customer related
to a single digital asset kiosk transaction that exceeds the
greater of the following:
(1) $5; or
(2) 15% of digital assets involved in the transaction
according to the market price of the digital asset at the

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

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

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

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

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Digital Assets Regulation Act.