Illinois proposes 0.2% tax on crypto transactions

The U.S. state of Illinois is considering a 0.2% tax on cryptocurrency transactions, a proposal facing strong backlash from the industry, Cointelegraph reported. The measure, referred to as the Crypto Privilege Tax, was included in the state's fiscal year 2027 budget bill, which has passed the Illinois Senate. The bill includes severe criminal penalties, with brokers such as exchanges and intermediaries facing up to five years in prison for failing to withhold the tax. Critics have warned that the legislation could effectively kill the state's virtual asset industry if signed into law by the governor.