New York Grants Bitlicense to Institutional Crypto Exchange Seed CX

The New York Department of Financial Services (NYDFS) has awarded virtual currency licenses to two subsidiaries of Seed CX, an aspiring crypto derivatives provider.

NYDFS Superintendent Linda Lacewell revealed on July 15 that Zero Hash LLC and Seed Dogital Commodities Market LLC (SCXM), both of which operate under Seed CX, had gotten BitLicences. In addition, Zero Hash has also been awarded a money transmitter license.

The Bain Capital-backed cryptocurrency exchange introduced spot trading services in early 2019 and anticipates getting regulatory approval to provide forwards trading in the following months.

SCXM, with its BitLicense, is now officially able to be a matching engine for cryptocurrency buyers and sellers, along with serving as a platform for block trades. The firm can offer services to big financial and trading companies in effect, while Zero Hash will act as the money transmitter in collaboration with SCXM.

“Being granted two virtual currency licenses by the New York Department of Financial Services marks the next step in our growth to becoming the leader in institutional trading of digital assets,” Edward Woodford, CEO of Seed CX, said in a statement.

“As virtual currency license holders we will be able to expand trading and settlement services to New York firms through our institutional platform that offers the strong institutional technology, the operational support, and the regulatory compliance that institutions demand,” he added.

Lacewell stated that the approvals mean NYDFS has now awarded over 20 of its virtual currency licenses since the regulation was decided in 2015.

“The Department’s approval of these new licenses will provide institutional customers with more choice while also protecting consumers and the public through strong anti-money laundering, cybersecurity and other compliance standards in a continuously evolving global financial services marketplace,” she stated.