NYC Mayor Looks To Remove the State BitLicense Scheme In Favor Of Innovation

Twitter icon  •  Published 1 год назад  •  Mark Weaden

The newly appointed pro-crypto mayor Eric Adams believes the BitLicense scheme impedes innovation in New York state

The newly appointed pro-crypto mayor Eric Adams believes the BitLicense scheme impedes innovation in New York state. He is proposing the abolishment of the scheme for cryptocurrency exchanges, as it limits the economic growth of the sector.

Adams went for office on the platform that he was going to innovate the city and bring crypto to the New Yorkers. As such, it’s unsurprising to see his position regarding such a rigid policy. 

Adams Attended The Crypto And Digital Assets Summit

The statement regarding his position on the scheme was made on Wednesday (April 27, 2022) while speaking at the Crypto and Digital Assets Summit in London. The event was held by London-based newspàper the Finance times, expressing that  “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.”

When Was The Scheme Introduced?

The New York Department of Financial Services (NYDFS) was implemented back in 2015, broadly regulating cryptocurrency. Crypto firms in the state interesting in acquiring the license have to pay an application fee of $5,000 and would have to fit strict criteria to pass

But, since being first introduced, there has been a lot of pushback from the digital asset community, due to the overbearing application process. Five years after it was first introduced in 2020, an NYDFS regulator proposed a conditional BitLicense to incentivize businesses to set up shop in New York. 

What’s Next For Adam’s NYC?

While Adams is pioneering a crypto revolution in the city, his comments haven’t been well received by those in favour of the scheme. The executive of the Global Financial Markets Center at Duke University, Lee Reiners, said that it boosts consumers’ confidence in the cryptocurrency market.

However, it’s unlikely this will dampen the mayor’s spirits, as he revealed plans to use blockchain technology or the city’s record-keeping. Adams believes that blockchain would prevent fraud and ensure the validity of important documents. Additionally, he wants to see the government building blockchain crypto campuses to enable young people to better understand the industry.

For a mayor who has been receiving his paycheques in BTC and ETH for the last few months, his vision for the future may be hard to grasp for some. However, his perseverance could shape a new era for the city of New York.

Author

Mark Weaden

Mark Weaden is a British researcher and crypto enthusiast, living in Barcelona. His work has been published on a variety of leading cryptocurrency sites.