NYC Mayor Eric Adams Proposes Removal of State Bitlicensing Scheme

New York City (NYC) Mayor Eric Adams is advocating for an end to the stringent BitLicense scheme for cryptocurrency exchanges, which, according to the mayor, is stifling innovation and economic growth. Bitlicense Rule Not Beneficial for New York Adams made the suggestion while speaking at the Crypto and Digital Assets Summit organized by the Financial [...]

NYC Mayor Eric Adams Proposes Removal of State Bitlicensing Scheme

New York City (NYC) Mayor Eric Adams is advocating for an end to the stringent BitLicense scheme for cryptocurrency exchanges, which, according to the mayor, is stifling innovation and economic growth.

Bitlicense Rule Not Beneficial for New York

Adams made the suggestion while speaking at the Crypto and Digital Assets Summit organized by the Financial Times, a London-based daily newspaper, on Wednesday (April 27, 2022). NYC Mayor said The licensing process seemed to have hurt New York.

According to Adams:

“New York state is the only state to require a license for crypto companies. That’s a high barrier, and it makes us less competitive. We have to stay competitive.”

The New York Department of Financial Services (NYDFS) first introduced a cryptocurrency regulatory licensing rule called BitLicense in 2015. Crypto firms in the state who wish to obtain a license will have to pay an application fee of $5,000 and have to go through strict requirements.

However, the BitLicense plan has drawn sharp criticism from the digital asset community due to the rigorous process involved. In June 2020, the NYDFS regulator called for comments on a proposed conditional BitLicense to incentivize cryptocurrency businesses to operate in New York.

Adams’ remarks for scrapping BitLicense, meanwhile, were not well received by some proponents of the rule. According to Michael Kink, executive director of the New York-based Strong Economy for All Coalition, regulation is essential for a speculative and deregulated sector like crypto.

Furthermore, contrary to the mayor’s statement about innovation hindering BitLicense, Lee Renners, executive director of the Global Financial Markets Center at Duke University, said it boosts consumer confidence in the cryptocurrency market.

Shortly before Adams’ pro-crypto remarks, the New York State Assembly passed a bill that puts a two-year moratorium on proof-of-work (PoW) crypto mining facilities that use carbon-based energy.

Adams Doubles Down on Crypto and Blockchain Education

NYC mayor also unveils plans use blockchain technology To keep city records. According to Adams, the inclusion of blockchain can help prevent fraud and ensure the authenticity of documents such as birth certificates and housing deed.

In addition, the mayor said that his government is building blockchain crypto complexes to enable young people to better understand the growing industry. A similar statement was made by the American politician when he was newly elected.

Adams is an advocate of crypto and has committed to making NYC a bitcoin hub. After assuming the role of mayor in January 2022, the politician confirmed that he would receive his first three salaries in BTC and ETH.

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source: cryptopotato.com