New York Grants Bitlicense to Institutional Crypto Exchange Seed CX

NYDFS has granted two BitLicenses to subsidiaries of Seed CX, allowing the company to offer crypto services to financial firms.

Jul 15, 2019 at 2:16 p.m. UTC
Updated Sep 13, 2021 at 11:11 a.m. UTC

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.

Edward Woodford photo courtesy Seed CX

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