The bill was initially unveiled on February 20 and was channeled to the House Revenue & Finance Committee on March 12.
The draft alters some facets of Illinois Revised Univorm Unclaimed Property Act, particularly including two rules related to virtual currencies, a legal terminology for cryptocurrencies and other assets with similar attributes.
The rule explains the guidelines for considering an asset as deserted by their actual owners. The assets include safety deposit boxes, real estate, securities and money orders.
Once an asset is considered to be without claim, the state is indebted to make efforts to get in touch with its most recent owner.
If there is no possibility of reaching the actual owner, the state treasurer will have the right to “claim” the asset, in essence gaining control over it.
The law basically caters to assets that are stored in custody by intermediaries such as banks and other financial institutions.
The acquisition procedure permits the custodian to recover any charges it may have accumulated and unpaid by the actual owner. The amended bill explains precisely how cryptos should be handled under the act.
The conditions for cryptocurrencies to be categorized as deserted are described as “five years after the last indication of interest.”
Expression of interest is a law term that consists of all types of communication between the custodian and the asset owner.
As an example, withdrawal of a portion of assets or informing changes in contact information.
The five year time limit seems to be considerably magnanimous, as several other assets can be categorized as abandoned after three years.
One crucial feature of the bill is that the government will not actually own cryptos received through this method.
The holder, which is the legal term for custodian, should compulsorily liquidate the assets.
The bill further states:
“The holder shall liquidate the virtual currency and remit the proceeds to the administrator. The liquidation shall occur anytime within 30 days prior to the filing of the report under Section 15-401.”
The actual owner loses right to claim soon after liquidation, the bill explains. The crypto rules seem to be stringently focused on crypto custody businesses, as taking control of crypto in a straight forward manner is very much impracticable.
If the bill goes through, crypto custody businesses within Illinois would gain precise hints for a crucial business processes.
Nevertheless, there are no well-known crypto custodians having office in Illinois.
The Chicago Mercantile Exchange (CME) offers Bitcoin (BTC) derivatives for institutional customers but has not begun direct custody, as of now.