It has become a credible headline: Eric Adams tweeted that the mayor paid in Bitcoin and wants his first three salaries. In the same tweet, Adams declared: “NYC will be at the heart of the cryptocurrency industry and other fast-growing and innovative industries! Wait a minute!”
With as much respect as possible for the mayoral election, his remarks made many of us laugh outdoors. Unfortunately, New York is ranked as one of the kindest places in the country due to the innovation of Bitcoin and cryptocurrencies. In fact, “just wait” is what we’ve been doing for years.
Before we do business in New York, companies working in this area are forced to navigate the rules and regulations of Byzantine states. This includes getting what is called a “Bit License”. BitLicense requires companies to provide extensive financial information disclosure and demonstrate compliance with a myriad of audited cybersecurity and anti-money laundering rules. Companies also need to meet one of the highest capital requirements in the country.
All of this prevented the innovation of cryptocurrencies and Bitcoin in New York. Obtaining a license can cost more than $ 1 million, and as a result, many companies in this area simply avoid the hassle. Due to many obstacles, my company is not yet licensed in this state.
According to the State Financial Services Authority, only 20 companies own Bitl Licenses. PayPal’s license is conditional to give you a sense of difficulty.
Both businesses and consumers in New York are losing.Residents of New York are currently prohibited from buying or selling Bitcoin from service providers. no Registered in the state — that is, almost everything. As a result of these and other rules, the myriad cryptocurrency exchanges simply do not allow New Yorkers to enter their platform.
To make matters worse, state leadership has doubled this uncompromising. Earlier this year, the State Senate passed a bill banning cryptocurrency mining in New York. It died in Congress, but it was a worrying signal that one of Congress’s two homes would ban cryptocurrency mining. When half of your legislature is completely legal in other areas and even tries to outlaw what is encouraged, no financial or technological innovation will occur.
The mayoral elections boast that regulatory and legislative threats are not the move to turn New York into the “center of the cryptocurrency industry.” There’s a reason Blockchain.com moved from New York to Miami this summer, and most of the key players in this area aren’t coming out of Big Apple.
Still, Adams’ ambitions should be praised, and it is correct for the man to try to position the city as a cryptocurrency center. New York City has been the financial center of the world for over a century, and due to backward thinking in Albany, the next financial services innovation should not be overlooked. Give the land to Austin, San Francisco, or Miami. ..
Under the leadership of the new mayor, Gossam should bend the muscles of local federalism. The mayor can ring the trumpet and develop political power to grow the New York industry. First, urge state leaders and officials to change the rules regarding cryptocurrencies and the rules that prevent small blockchain startups from moving to Big Apple. This especially begins with the Bit License, which impedes the growth of the industry.
Adams could also start turning the city government into a Bitcoin incubator. One of the most powerful uses of this technology is efficient and rapid distribution of funds. This is a multi-billion dollar feature of the city’s bureaucracy. He could encourage city agencies to send Bitcoin payments. This is the process of reducing administrative overhead and saving taxpayers’ money.
Mayor Adams may find a receptive audience among his members due to Bitcoin’s innovation. Many of New York’s leading technology and financial companies have an active interest in Bitcoin and its development. Bitcoin also opens the door to non-traditional financial people and has the potential to create thousands of new jobs in New York. The city has long attracted talent, and the need for hard-working people skilled in Bitcoin space has never been greater.
In other words, Adams’ enthusiasm is both victorious politics. When Effective policy. He and other city leaders have the right to show an interest in Bitcoin at the moment of sector growth and development. But the words have to match the act, and Mayor Elect has to do more to make New York City feasible with Bitcoin.
By doing so, he (and millions of other people) will not only be paid in Bitcoin, but will also be able to profit from the achievements of this technology in a meaningful way.
Alexander Leishman is the CEO and co-founder of River Financial.