Illinois has decided to postpone the unexpected cryptocurrency tax that was initially set to take effect on January 1, granting a six-month extension, as confirmed by industry groups involved in the negotiations. This delay is still subject to approval from a judge.
The Digital Chamber and the Illinois Blockchain Association reached this agreement with state officials, according to information shared with CoinDesk. This development may alleviate some of the concerns regarding the impending tax, as crypto advocates continue to push against its implementation. In June, the state’s government had approved a 0.2% tax on cryptocurrency transactions for businesses that exceed $100,000 in total receipts, which encompasses all transaction activities and asset storage services.
A formal request for this postponement is anticipated to be submitted on Thursday morning at the Sangamon County Circuit Court. If the court grants approval, both parties can avoid prolonged legal disputes and shift their focus to addressing the key legal issues surrounding the constitutionality and enforceability of the Digital Asset Tax Act.