Crypto Groups Battle Illinois Over 0.2% Tax on Crypto Transactions
Illinois' 0.2% crypto tax is facing opposition from two prominent trade groups, the Crypto Council for Innovation (CCI) and Blockchain Association (BA), who have filed a motion for a preliminary injunction to block its enforcement.
The tax, set to take effect in January 2027, would require digital asset firms to pay a 0.2% tax on cryptocurrency transactions based on their volume rather than income.
CCI CEO Ji Hun Kim stated that companies are being asked to spend millions building systems for the tax without clear answers about what is taxed and when, under the threat of criminal penalties.
The trade groups have already filed a lawsuit challenging the tax on constitutional grounds, citing violations of the US Constitution, state constitution, federal and state due process laws, and the Internet Tax Freedom Act.