(The Center Square) – Operators of virtual currency kiosks in Illinois may soon be regulated by the state.
The Illinois Senate Executive Committee advanced legislation Wednesday which would place kiosks that exchange cryptocurrency and cash under supervision of the Illinois Department of Financial and Professional Regulation (IDFPR).
State Sen. Laura Ellman, D-Naperville, said Senate Bill 2319 provides consumer protections.
“Currently there are no regulations, no consumer protections for cryptokiosks in Illinois. This bill establishes those consumer protections, and it also provides the industry a predictable setting to not only operate, but also grow here in Illinois,” Ellman said.
State Sen. Sue Rezin, R-Morris, asked IDFPR attorney David Berland about costs associated with the legislation.
“As with all acts, there will be expenses in implementing and administering it. Those cost expenses will be borne by industry and not the taxpayers in Illinois,” Berland said.
Berland estimated there were about 600 cryptokiosks in the state, but he said the exact amount could not be known until the industry is regulated. He said IDFPR would oversee the virtual currency industry without adding a large number of personnel.
Rezin questioned Berland about IDFPR planning to add about two staff members, noting that the agency has had difficulty getting licenses out for professionals.
“So are you saying that two people, essentially, or two or three or two to five will be enough to oversee a brand-new department within a department and all of the responsibility that goes with it?” Rezin asked.
Berland said he believed IDFPR was more than capable, despite concerns about the agency.
“I would like to note that those concerns primarily relate to professional licensing, where this industry would go under the banking part of our department,” Berland said.
The Illinois Senate Executive Committee voted 8-3 in favor of SB 2319. The bill still needs approval by the full Senate and the Illinois House to reach the governor’s desk.
