Illinois Agrees to 6-Month Pause On Crypto Tax

Illinois has reportedly agreed to postpone implementing a new tax on crypto transactions.

The tax, the first state levy of its kind in the country, imposes a 0.2% duty on crypto when it is exchanged, transferred or stored.

But as CoinDesk reported Thursday (Oct. 1), the new tax may not go into effect on Jan. 1 as scheduled, after two industry groups managed to negotiate a delay with the state.

The Digital Chamber and Illinois Blockchain Association reached that agreement with state officials, the Chamber told CoinDesk, though it still needs to be approved by the judge handling those groups’ lawsuit against the state.

According to the report, that approval will mean both sides can focus on the next stage of the legal fight, the “disputed issues of law regarding the constitutionality and enforceability” of the state’s Digital Asset Tax Act.

“We’re pleased that the State of Illinois has agreed to delay implementation of its Digital Asset Tax, giving digital asset businesses and users relief from costly compliance obligations while we continue to seek to have this tax permanently repealed through the courts,” said Digital Chamber CEO Cody Carbone in a statement to CoinDesk.