NYC Mayor Eric Adams Calls for an End to the BitLicense Scheme

Bob Mason
Published: Apr 28, 2022, 05:21 GMT+00:00

Following two lawmaker bills targeting cryptos, NYC Mayor Adams is looking to avoid crippling hopes of NY becoming a digital asset hub


Key Insights:

  • On Wednesday, New York City Mayor Eric Adams called for an end to the BitLicense scheme.
  • Crypto-related firms avoid New York due to the need to obtain a BitLicense.
  • NewYorkCoin (NYC) holders cannot trade NYC due to BitLicense requirements.

It is a busy week for New York lawmakers, who have placed greater attention on digital assets.

Amidst rising government and regulatory scrutiny, New York lawmakers are looking to address the impact of Proof-of-Work mining on the environment and curb a rise in illicit activity.

The recent legislative maneuvers could impact New York’s hope of becoming a digital hub.

One issue that New York City continues to face is the need for crypto firms to obtain a BitLicense. The issue has become significant enough for New York City Mayor Eric Adams to raise the subject publicly.

New York City Mayor Adams Calls to End to the BitLicense Scheme

This week, New York City Mayor Adams was one of the key speakers at the Financial Times Crypto and Digital Assets Summit.

On Wednesday, Mayor Adams discussed the BitLicensing regime, highlighting its impact on economic growth and innovation.

Mayor Adams reportedly added,

“It’s about thinking not only outside the box, but on this one, we may have to destroy the box.”

In March, FX Empire reported a snag with NewYorkCoin (NYC). According to the report, crypto exchanges that have procured a BitLicense have not listed NYC, which prevents citizens from trading in NYC.

The report states that “New York’s BitLicense regulatory regime is the most demanding in the United States. Digital currency firms in New York currently have to apply for a BitLicense, which can take years to process.”

Powered by Stacks (STX), CityCoins is “a protocol that enables smart contracts on the Bitcoin network.” Miners can forward STX into the Stacks protocol. CityCoins miners receive 70% of all stacked STX tokens in NewYorkCoin. Miners can then mine the rewarded NYC to earn BTC rewards.

The requirement for a BitLicense has led to crypto-related firms moving or establishing elsewhere.

It is not the first time Mayor Adams has shared his view on Bitcoin.

In February, Mayor Adams voiced his opposition to crypto mining at a local government budget hearing.

For Bitcoin (BTC) and the broader crypto market, the opposition to crypto mining came despite Adams taking a Bitcoin salary and supporting the introduction of NewYorkCoin (NYC).

The comments from Mayor Adams follow New York lawmakers presenting new crypto-related bills.

New York Lawmaker Bills Question Digital Hub Aspirations

This week, lawmakers have presented two crypto-related bills.

On Wednesday, FX Empire reported on a new Proof-of-Work mining bill, Assembly bill A7389C.

Currently awaiting a Senate vote, the bill,

“establishes a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions; provides that such operations shall be subject to a full generic environmental impact statement review.”

The bill went on further to say that, for a period of two years, the Department of Public Service will not approve a new application or issue a new permit for “an electric generating facility that utilizes carbon-based fuel and that provides, in whole or in part, behind-the-meter electric energy consumed or utilized by cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions.”

In addition, the Department of Public Service may not approve an application to renew an existing permit during the two-year period.

The second bill, Senate Bill S8839, relates to illegal activity and has yet to be debated. New York lawmaker Kevin Thomas introduced a bill to criminalize illicit activity across the digital asset space.

The bill,

“Establishes the offenses of virtual token fraud, illegal rug pulls, private key fraud, and fraudulent failure to disclose interest in virtual tokens.”

Proposed penalties include,

“a civil fine of not more than five million dollars or imprisoned not more than twenty years, or both, except where such a person is a person other than a natural person, a fine not exceeding twenty-five million dollars.”

For New York to not lose out to the likes of Florida and other crypto-friendly states, lawmakers may need to consider the Mayor’s comments.


About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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