Tuesday, December 6, 2022

NYC Mayor Proposed The Removal Of State BitLicense Scheme

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The NYC Mayor proposed the removal of the state BitLicense scheme because he believes it hampers innovation in the state so let’s read more today in our latest cryptocurrency news.

Eric Adams, the NYC mayor proposed is advocating for the abolishment of the BitLicense scheme for crypto exchanges which is stifling innovation and economic growth. Adams made the suggestion while speaking at the Digital Assets Summitt that was held by London-based Financial Times and he said that the licensing procedure seemed to put New York at a disadvantage. According to Adams:

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

The New York Department of Financial Services introduced a crypto regulatory licensing rule dubbed BitLicense in 2015 and crypto companies in the state looking to acquire the license will have to pay an application fee of $5000 and will undergo strict requirements. However, the BitLicense scheme came under intense criticism from the crypto community because of the stringent process involved. Back in 2020, the NYDFS regulator called for comments on the proposed conditional BitLicense to encourage crypto businesses to work in New York.

eric adams
Eric Adams, Source nytimes.com

Adam’s comment to scrap the BitLicnese was not well recieved by some proponents of the rule and according to the director of New York-based Strong Economy for All Coalition, the rule is much needed for a speculative sector such as crypto. Contrary to the mayor’s statement about the BitLicense hampering innovation, Lee Reiners as the executive director of the Global Financial Markets Center at Duke University said that it can boost consumers’ confidence in the market. Before Adam’s pro-crypto comment, the New York State Assembly passed a bill that places a moratorium on PoW mining facilities that use carbon-based energy.

The NYC major revealed plans to use blockchain technology for the city’s record-keeping and incorporating blockchain can help prevent fraud and ensure the authenticity of the documents like birth certificates and housing deeds. The mayor also said that the government is building blockchain campuses to enable young people to start understanding the industry. The US politician made a similar statement when he was elected. Adams is a strong advocate of crypto and expressed a commitment to making the city a Bitcoin Hub. After his mayoral role in January 2022, the politician noted that he will receive his first three paychecks in BTC and ETH.

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