Illinois Gives Crypto Industry Reprieve from Tax with Six-Month Delay

The state of Illinois has agreed to a six-month delay in implementing a tax on cryptocurrency, a concession made as the industry continues to fight the measure in court. The tax, which was set to take effect on July 1, would have imposed a 0.25% tax on cryptocurrency transactions. However, the delay will give the industry more time to challenge the tax in court, with the case set to be heard in the coming months.

The Illinois Department of Revenue had initially argued that the tax was necessary to raise revenue for the state. However, the industry has argued that the tax is unconstitutional and would be a significant burden on cryptocurrency traders and investors. The delay is seen as a victory for the industry, which has been fighting against the tax for months.

The industry continues to argue that the tax would be a significant barrier to entry for new investors and traders, and would drive business out of the state. The case is being closely watched by the cryptocurrency industry, as it could set a precedent for other states to follow.

CoinDesk has reached out to the Illinois Department of Revenue for comment, but has not received a response.