SB1797 for Digital Assets Protection Approved in Illinois

Illinois residents who participate in cryptocurrency ventures will now have a safer environment thanks to Senate Bill 1797 (SB1797). Also known as the Digital Assets and Consumer Protection Act, SB1797 endeavors to enforce security measures to crypto businesses.

State Senator Mark Walker stated the digital assets industry is an exciting economic opportunity, but it attracts many bad actors. This is where SB 1797 comes into play, 

“This bill would create reasonable guidelines for crypto companies to follow without limiting their growth and opportunity,” Senator Walker added.

Main Proponents of the Digital Assets and Consumer Protection Act

SB1797 requires crypto businesses to register with the Illinois Department of Financial and Professional Regulation before operating in the state. This includes mandatory registration for any firm offering digital asset services to Illinois residents based out of state territory.

Moreover, SB1797 mandates crypto companies to lay out their investment processes in a clear, concise manner. Companies need to disclose the full fee structure, inform users whether their assets are insured, and explain key risks. They should clearly explain the possibility of losing access to funds due to fraud, outages, or security breaches to investors.

Furthermore, SB1797 seeks to crack down on shady exchange practices. Platforms listing crypto tokens must comply with various security checks. They are required to assess security risks, and disclose potential conflicts of interest. Moreover, platforms are mandated to conduct regular reviews to determine if the token remains fit for listing.

SB1797’s Token Listing Process 

Before listing any token, platforms must report to the Department of Financial and Professional Regulation regarding the steps they’re taking to prevent manipulation, price rigging, and insider-driven scams.

Businesses are required to store user assets separately from their own. They are also prohibited from using customer funds for lending or other purposes without consent. If the company were to go bankrupt, these assets would be legally safeguarded. These will be regarded as trust property rather than part of the company’s own assets.

SB1797 also establishes guidelines for managing complaints and providing customer support. Companies are required to offer toll-free support lines and have transparent procedures for resolving disputes and reporting fraud.

What Does SB1797 Mean for Crypto Casinos?

For crypto casino USA operators, they will need to comply with the Digital Assets and Consumer Protection Act. This means that players can expect a safer crypto environment when they use their cryptocurrency on their online casino sessions.

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Moreover, they can maximize the operators’ crypto bonuses to further enjoy their online casino gaming. That said, Illinois still hasn’t legalized online casino gambling. But with such developments in digital assets, sooner or later online gambling will be discussed by local legislators.