Illinois has agreed to pause a proposed tax policy that would apply a 0.2% levy to a wide range of cryptocurrency activity, including purchases, sales, and even transfers between a user’s own wallets. The measure, introduced in June, was described as something no other U.S. state had previously tried. The tax would apply regardless of whether a trader made or lost money, meaning a taxable event could be triggered simply by using crypto. According to a court filing cited by BlockBeats, state officials and crypto industry groups jointly asked a Sangamon County judge to move the implementation date from Jan. 1, 2027, to July 1, 2027. The change has not taken effect yet and still requires judicial approval.
Illinois has agreed to pause a tax proposal that would have charged 0.2% on cryptocurrency purchases, sales, and even transfers between a user’s own wallets.
According to BlockBeats on Oct. 2, the state introduced the policy in June this year. The measure was described as a tax approach that no other U.S. state had previously attempted. Under the proposal, Illinois would collect the 0.2% tax whenever someone bought crypto, sold crypto, or moved their digital assets from one wallet to another.
The tax would apply whether a trader made money or lost money on the transaction. In practice, that meant simply using cryptocurrency could create a taxable event.
On Thursday, Illinois agreed to hold off on the new policy. A court filing said state officials and crypto industry groups jointly asked a Sangamon County judge to push the implementation date back from Jan. 1, 2027, to July 1, 2027. The request is still awaiting the judge’s approval.
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