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Mayor Eric Adams of New York City proposes that the state’s BitLicense scheme be abolished

The mayor of New York City, Eric Adams, is pushing for the repeal of the stringent BitLicense regime for bitcoin exchanges, which he claims is suffocating innovation and economic progress.

New York will not benefit from the BitLicense rule.

On Wednesday, Adams made the remark while addressing at the Financial Times’ Crypto and Digital Assets Summit in London (April 27, 2022). The licensing process, according to the mayor of New York , appears to put New York at a disadvantage.

“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.”

In 2015, the New York Department of Financial Services (NYDFS) established BitLicense, a cryptocurrency regulatory licensing rule. Crypto companies in the state that want to get a license will have to pay a $5,000 application fee and meet a slew of restrictions.

The BitLicense plan, on the other hand, has been heavily criticized by the digital asset community due to the lengthy process required. The New York Department of Financial Services (NYDFS) issued a request for opinions in June 2020 on a proposed conditional BitLicense to encourage bitcoin businesses to operate in the city.

Meanwhile, some supporters of the rule were not pleased with Adams’ suggestion to scrap the BitLicense. The rule, according to Michael Kink, executive director of the Strong Economy for All Coalition in New York, is vital for a speculative and deregulated market like cryptocurrency.

In addition, contrary to the mayor’s claim that the BitLicense stifles innovation, Lee Reiners, executive director of Duke University’s Global Financial Markets Center, claims that it increases consumer confidence in the bitcoin sector.

The New York State Assembly enacted a law putting a two-year prohibition on proof-of-work (PoW) crypto mining facilities that use carbon-based electricity just before Adams’ pro-crypto remark.

Adams Redoubles His Efforts to Teach Crypto and Blockchain Technology

The mayor of New York also unveiled intentions to deploy blockchain technology to maintain track of the city’s records. According to Adams, adding blockchain into documents such as birth certificates and real estate deeds will help avoid fraud and assure the authenticity of the records.

In addition, the mayor stated that his administration is constructing blockchain crypto campuses to help young people better grasp the rapidly growing business. When he was first elected, the US politician made a similar comment.

Adams is a proponent of cryptocurrency and has stated his desire to turn New York City into a Bitcoin hotspot. The candidate stated that he will earn his first three paychecks in BTC and ETH after taking office as mayor in January 2022.

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