Pro crypto mayor of New York, Eric Adams thinks that the BitLicense rule acts in hampering innovations within the region
While advocating for a strict BitLicense scheme’s abolishment, the Mayor of New York City, Eric Adams, said that this stifles economic growth and innovation. Adams, while speaking at the conference, tagged the Crypto and Digital Assets Summit held by the Financial Times, a London-based daily newspaper, on Wednesday. He said that the licensing procedure appeared to put New York City at a disadvantage.
As per Adams, the state of New York is the only state where crypto companies require a license, and that’s a high threshold, it works as a hurdle, and it just makes the region less competitive. Mayor said that they have to be competitive continuously. In 2015, BitLicense was launched, which is a cryptocurrency regulatory licensing rule introduced by the New York Department of Financial Services (NYDFS).
Crypto firms in the New York state looking to acquire this license would have to pay $5,000 as an application fee and would also go through stringent requirements for the license. However, the BitLicense scheme has faced intense criticism from the crypto community for the rigorous process involved in its issuance. The NYDFS in June 2020 called for comments on BitLicense’s proposed conditional version to encourage more cryptocurrency businesses to operate in the New York region.
However, several proponents of the rule did not receive well the comments made by Adams to scrap the BitLicense. According to Michael Kink, the executive director of the Strong Economic for all Coalition, based in New York, the rule is quite necessary for such a speculative and unregulated sector.
Contrary to the NYC Mayor’s statement about hampering innovation by BitLicense, executive director of the Global Financial Markets at Duke University, Lee Reiners, said that it would boost consumers’ confidence in the new space of the crypto market. Right before the pro-crypto comment of Adams, the New York assembly has passed a bill itself that places a prohibition of two years on crypto mining facilities based on proof of work that uses carbon-based energy.
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Source: https://www.thecoinrepublic.com/2022/04/30/why-did-the-new-york-mayor-propose-the-state-bitlicense-removal-scheme/