A legal battle has officially begun in Illinois over a new virtual asset transaction tax! According to Binance News, crypto advocacy groups have filed a lawsuit against the state. The controversial bill proposes a 0.2% transaction tax on service providers that facilitate the trading or custody of virtual assets for Illinois residents.

The industry is speaking out, arguing that this bill is likely unconstitutional and could stifle business growth. With the lack of clear federal regulatory guidelines, if state governments start introducing their own tax policies one by one, the regulatory cost burden for companies will inevitably skyrocket. The outcome of this lawsuit could set a major precedent for virtual asset policies in other U.S. states, making it a very interesting case to watch.

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