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.
With its BitLicense, SCXM is now legally able to serve as a matching
engine for crypto buyers and sellers, as well as act as a platform for
block trades. The company can provide services to large financial and
trading firms as a result, with Zero Hash acting as the money
transmitter in partnership 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,” 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.
“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 said.
source link
