Ill. Admin. Code tit. 74 § 760.407

Current through Register Vol. 48, No. 50, December 13, 2024

Section 760.407 - Reporting Virtual Currency

a)If property reported to the administrator is virtual currency, 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 of the Act.

b)The owner 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 under this Section. [765 ILCS 1026/15-603(i) ]

c) If a holder reasonably believes it cannot liquidate virtual currency and cannot otherwise cause virtual currency to be liquidated, the holder shall promptly notify the administrator in writing and explain the reasons why the virtual currency cannot be liquidated as otherwise required by the Act. Reasons why a holder cannot liquidate virtual currency include, but are not limited to, the following:

1) the cost of liquidation and delivery to the administrator would exceed the value of the virtual currency on the date a report is due under the Act;

2) there is no functioning market in the virtual currency; or

3) trading in the virtual currency is so limited that liquidation of the virtual currency would result in a market distortion for such virtual currency.

d) The administrator may direct the holder to:

1) transfer the virtual currency that cannot be liquidated to a custodian selected by the administrator; or

2) continue to hold the virtual currency until the administrator or the holder determines that the virtual currency can be liquidated pursuant to the Act or there is an indication of apparent owner interest pursuant to Section 15-210 of the Act.

Ill. Admin. Code tit. 74, § 760.407

Added at 46 Ill. Reg. 16898, effective 9/26/2022

Amended at 48 Ill. Reg. 14162, effective 9/10/2024