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CPI | Illinois Enacts First-of-Its-Kind Digital Asset Tax - PYMNTS.com

Detected July 13, 2026 · in Crypto & DeFi Tax Reporting

Illinois enacted a first-of-its-kind digital asset tax, requiring reporting and potential withholding on digital asset transactions. This creates new compliance obligations for businesses operating in or with Illinois residents.

Aforeworn detected this change in the Crypto & DeFi Tax Reporting space on July 13, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Crypto exchanges, brokers, DeFi protocols, accounting firms, and high-volume traders with Illinois nexus should confirm how it applies to their specific situation before acting. There is a time constraint attached: Effective date likely January 1, 2025 (typical for state tax laws); check exact date in enacted bill.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Crypto & DeFi Tax Reporting continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.

What changed

Illinois passed a law imposing a digital asset tax, likely requiring reporting (e.g., 1099-DA-like forms) and possibly withholding on gains from digital asset transactions by Illinois residents.

Who it affects

Crypto exchanges, brokers, DeFi protocols, accounting firms, and high-volume traders with Illinois nexus

What you must do

Assess Illinois nexus, update tax reporting systems to capture Illinois-specific data, and prepare for potential withholding obligations.

Deadline

Effective date likely January 1, 2025 (typical for state tax laws); check exact date in enacted bill.

Source: https://news.google.com/rss/articles/CBMijgFBVV95cUxOSHA1cFVwWkRSMXkxQl9VRXJrSWtkZmY2dVZUUjl0eGpXWDgtb0I4YXNQOUpZZWZOLWtWdXVCVXh0QVhoMU81LTVGNDl3MjNCVUt0Z0p3MnZjTUlIWlJUZjl1LXdGeVBMZzFJRktMT09DTjNfSDF6dVRoWGg4YUxpVm1heFZTV3JGZnR0T3dB?oc=5

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