Leawood, KS – November 2, 2021: The State of Illinois has enacted Senate Bill 338 (SB 338) which amends the definition of “virtual currency” and adopts express reporting requirements for such property. SB 338 was first introduced on February 19, 2021, and was signed by Governor Pritzker on August 6, 2021. The new law became effective August 6, 2021.
SB 338 broadens the definition of “virtual currency,” which was already a defined term in Illinois’ version of the Revised Uniform Unclaimed Property Act (RUUPA), to now include “any type of digital unit, including cryptocurrency, used as a medium of exchange, unit of account, or a form of digitally stored value, which does not have legal tender status recognized by the United States.” This definition explicitly excludes “game-related digital content,” “a loyalty card,” and “software or protocols governing the transfer of the digital representation of value.” “Game-related digital content” is defined as “digital content that exists only in an electronic game or electronic-game platform.”
SB 338 adopts an express reporting requirement for virtual currency, requiring liquidation of virtual currency within 30 days prior to reporting and remitting the proceeds of the liquidation to the administrator. SB 338 states that owners shall not have recourse against the holder or the administrator to recover any gain in value that occurs after the liquidation of the virtual currency required under this Bill.
Under SB 338, virtual currency is considered abandoned 5 years after the owner’s last indication of interest in the property. In addition to addressing the abandonment period for virtual currency, SB 338 also changed the abandonment period for money orders from 7 years to 5 years after issuance.
More information regarding RUUPA can be found here: RUUPA.
To read Illinois SB 338 click here: Illinois SB 338.
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