SPRINGFIELD, Ill.—A bill in Illinois to revamp the state’s crypto licensing requirements has advanced, putting crypto companies “on notice,” according to a new report.
The Fintech-Digital Asset Bill requires exchanges and crypto businesses to obtain a license from the Illinois Department of Financial and Professional Regulation. The bill also outlines new risk protection and disclosure requirements for companies engaging with crypto, Blockworks reported.
The licensing requirements apply to businesses that facilitate crypto trading, crypto custodians, and any business “engaging in digital asset administration,” the bill text reads. Licensed entities can also not store or facilitate trading of stablecoins unless the stablecoin is issued by an FDIC insured institution or another registered issuer and the issuer has fully-backed reserves at all times, Blockworks stated.
Additional Requirements
According to the report, under the proposed law, exchanges are also required to submit documentation before listing assets to disclose any risks of the asset being considered a security and any conflicts of interest with the exchange and token.
Additionally, exchanges must conduct a “comprehensive risk assessment designed to ensure consumers are adequately protected,” the bill states.
It’s Called Fresh for a Reason. And We Offer Home Delivery. For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com