New York City Mayor Eric Adams has slammed his state’s BitLicensing regime, claiming that it stifles innovation and economic growth.
In a closing keynote interview at the Crypto and Digital Assets Summit in London on Wednesday, Adams advised his state legislature counterparts in Albany to “listen to those who are in the industry,” adding, “It’s about thinking not only outside the box but on this one, we may have to destroy the box.”
Adams is a crypto advocate who ran for mayor with the intention of making New York City the “center of the cryptocurrency industry,” and he received his first three paychecks in Bitcoin (BTC). In the interview, he stated that cryptocurrencies and blockchain technology are the “next chapters in the future,” and that the opportunity should not be missed.
“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.”
Since 2015, any “virtual currency business” that wishes to provide services in New York must obtain a BitLicense. The license ensures that New York residents have a “well-regulated way to access the virtual currency marketplace,” and that the state remains at the “center of technological innovation and forward-thinking regulation,” according to the New York State Department of Financial Services (DFS).
When the license was introduced, many crypto firms relocated from New York, and a recent call to remove regulatory barriers and ease restrictions focuses on the license, which costs $5,000 in application fees and has unclear capital requirements set by the DFS.
Legislators in the state capital of Albany take a much stricter regulatory approach to the cryptocurrency industry than Adams would. The New York State Assembly passed a bill to the Senate on Tuesday that would impose a two-year ban on all new proof-of-work (PoW) cryptocurrency mining facilities that use carbon energy.
Governor Kathy Hochul signed into law on April 9 a requirement that BitLicensed firms pay assessment fees to cover the cost of regulatory operating expenses incurred by the DFS, potentially imposing tens of thousands of dollars in additional fees on firms.
“It is critical that we collaborate with state lawmakers and regulators,” Adams said. “I’m really pleased to see Governor Hochul leaning into this industry as we examine what bureaucratic issues we need to address.”
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