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Digital Assets Resources for Consumers
What are digital assets?
Digital assets are items of value that exist in electronic form and can be owned, transferred, or traded. Common examples include cryptocurrencies like Bitcoin and Ethereum or stablecoins linked to the U.S. dollar.
They can be used to send value to others, invest, or purchase goods and services. However, because they operate online, they also carry unique risks such as price volatility, scams, and loss of access to funds.
Illinois recently passed new laws to regulate digital asset business activity and digital asset kiosks or “crypto ATMs”. These laws aim to Improve transparency and accountability for digital asset companies, provide clear rules for businesses that handle customer funds, and give consumers better protection against fraud and scams.
What are digital asset kiosks?
Digital asset kiosks are self-service machines that allow customers to quickly purchase cryptocurrency with cash. They’re often located in third-party locations like convenience stores. FINCEN has released an advisory about the use of digital asset kiosk machines, citing the spike in fraud and abuse cases in 2024. Consumers should be vigilant and do their research before using these machines.
What should consumers know before using digital assets?
- Volatility: Prices can rise or fall quickly; use caution when investing your money.
- No guaranteed protection: Unlike bank deposits, digital assets are not insured by the Federal Deposit Insurance Corporation (“FDIC”).
- Scams are on the rise: Be cautious of offers that promise guaranteed returns or request payment in crypto under a tight timeframe.
- Kiosk use: Only use registered kiosks that display proper disclosures and refund policies.
How can I protect myself?
- Never share your private keys or wallet credentials.
- Use two-factor authentication and store crypto on secure wallets.
- Research before investing. Check consumer reports and red flags or unrealistic claims.
- Report scams or fraud to IDFPR or the Illinois Attorney General’s Consumer Protection Division.
Digital Asset Podcasts
In August 2020, IDFPR Launched the "Making Cents of Money" podcast with the University of Illinois System. The financial-focused podcast takes complex consumer topics and breaks them down in a fun, easy-to-understand format. More than 100 episodes have been produced, including several that focus on digital assets (including cryptocurrency):
- Episode 24: Cryptocurrency
- Episode 56: Fintech and Digital Assets
- Episode 76: What is Crypto Anyway?
- Episode 78: Is Crypto the Wild West?
Additional Resources
- Federal Advisory: FinCEN Notice, FIN-2025-NTC1, August 4, 2025
- IL Press Release: IDFPR | Gov. Pritzker Signs Historic Legislation to Protect Consumers from Cryptocurrency Scams
- IDFPR Notice: Industry Notification
- Consumer Guidance: What To Know About Cryptocurrency and Scams | Consumer Advice
- Deposit Insurance: Understanding Deposit Insurance | FDIC.gov
- Law Enforcement: Cryptocurrency Investment Fraud — FBI
