On Monday, NYDFS Superintendent Linda Lacewell announced that Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC (both companies are subsidiaries of Seed CX) had been granted BitLicenses, while Zero Hash has also been granted a money transmitter license.
The Bain capital-backed crypto exchange commenced spot trading services this year, it’s also working on regulatory approval to offer forwards trading in the coming months.
The license means SCXM has been authorized to serve as the matching engine for crypto sellers and buyers. The SCXM platform will also carry out block trades of crypto for trading companies and big financial institutions. In regards to Zero Hash’s money transmitter license, the license means they can now serve as a money transmitter for all the trading activities that result from SCXM. Zero Hash has already been registered with FinCEN by Seed CX as an FX Dealer and a Money Services Business. Additionally, the firm is also registered in over 30 states of the US as a Money Transmitter.
In a statement from the CEO of Seed CX, Edward Woodford said:
“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.”
“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.
Superintendent of the NYDFS, Linda Lacewell, said that their approval of the licenses will offer institutional consumers more options while protecting them with stringent standards for cybersecurity, compliance, and anti-money laundering in a continually evolving marketplace of financial services, globally. She also noted that Monday’s approvals mean NYDFS has now granted over 20 virtual currency licenses since regulations were finalized in 2015.