New York Authorized Bitlicense to Crypto Derivatives Provider Seed CX2 min read


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

NYDFS Superintendent Linda Lacewell announced Monday that Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC, both of which operate under Seed CX, had received BitLicenses, while Zero Hash has also been granted a money transmitter license.

The Bain Capital-backed crypto exchange launched spot trading services earlier this year, and hopes to receive regulatory approval to offer forwards trading (a product similar to cryptocurrency futures contracts) in the coming months.

See also  Characteristics of Bitcoin

Seed Digital Commodities Market and Zero Hash received the 20th and 21st virtual currency licenses issued to date that signifies another landmark announcement for parent company Seed CX. Lacewell said:

“We are pleased to have approved over 20 virtual currency businesses, and welcome Seed Digital Commodities Market and Zero Hash to New York’s growing virtual currency marketplace. 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.”

“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,” Seed CX CEO Edward Woodford said in a statement. He added:

“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.”

Lacewell noted in a statement that Monday’s approvals mean NYDFS has now granted more than 20 of its virtual currency licenses since the regulation was finalized in 2015.

See also  John Mcafee Fired Back at Donald Trump Tweet about Cryptocurrency

Seed CX and its subsidiaries now hold the following registrations and licenses: Swap Execution Facility (CFTC), Introducing Broker (NFA), Money Services Business (FinCEN), FX Dealer (FinCEN) and Money Transmitter (34 states), and has applied for Broker-Dealer registration with FINRA.


You may also like