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July 16, 2019

New York grants virtual currency licenses to Seed CX subsidiaries

The New York State Department of Financial Services (DFS) has awarded virtual currency licenses to Seed Digital Commodities Market (SCXM) and Zero Hash.

Both the companies are subsidiaries of Seed CX, an institutional platform for trading digital assets.

The New York regulator also gave green light to Zero Hash’s money transmitter license application.

Financial Services Superintendent Linda 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.”

With the licence, SCXM will serve as a matching engine for buyers and sellers of cryptocurrencies.  It will also serve as a platform for cryptocurrency block trades for large financial institutions and trading firms.

Zero Hash will operate as the money transmitter for the trading activity generated through SCXM.

Seed CX co-founder and CEO 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.”

In January this year, stock trading app Robinhood and bitcoin ATM provider LibertyX received cryptocurrency licences from DFS.

New York awarded another licence in April to  Bitstamp, a cryptocurrency exchange based in Luxembourg.

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