Earlier quoted context omitted.
The licenses are what made the taxi system so inefficient.
you are correct, but blatantly ignoring the law is usually not the best way to fix that
When you get to that point, it's obvious that the regulation is backwards, and it's nobody but taxi drivers that made it this way: they got licenses for free, then fought for their right to transfer them for money, then they fought to limit new licensing. Basically they lobbied for free money and screwing customers.