March 25, 2023

Illinois legalizes blockchain data storage

The US state of Illinois joined the ranks of other US entities that recognize the legal force smart contracts and blockchain entries.

The Blockchain Law entered into force on January 1, openingmany potential new legal scenarios for blockchain-based contracts. These contracts can now be used as evidence in court, as well as being recognized as an alternative to paper documents and are legally exempted from local taxation.

“A smart contract, record or signature cannot be“they are deprived of legal force or the possibility of enforcement only because a blockchain was used to create, store or verify a smart contract, record or signature,” the law says.

In addition to recognizing the validity of entries inblockchain, the law also protects the industry from interference by local authorities. This means that cities cannot impose taxes and introduce regulation, or require licensing for blockchain-based systems or companies that use them.

Recall that in Arizona, signatures and contracts inblockchain were recognized as legitimate back in 2017. In addition, last spring there was information that Connecticut could legalize smart contracts, and in August 2018, such a decision was made by lawmakers in Ohio.

Similarly, companies can useblockchain for administrative purposes in Delaware and Wyoming. At the same time, in the states of Florida and Nebraska, consideration of proposed bills on this topic was postponed indefinitely.