By
Bena Ilyas
May 13th, 2024
NYDFS Superintendent Linda Lacewell said that Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC, who operate under Seed CX, had received BitLicenses.
The New York Department of Financial Services (NYDFS) granted virtual currency licenses to two subsidiaries of crypto derivatives provider Seed CX. Seed Digital Commodities Market and Zero Hash have received approval from NYDFS Superintendent Linda Lacewell who announced that both companies received BitLicenses, adding that Zero Hash has also been granted a money transmitters license.
Seed CX, through its subsidiaries, offers a licensed exchange for institutional trading and settlement of fiat and digital asset products. The company also plans to offer a market for CFTC-regulated digital asset derivatives.
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.”
DFS has authorized SCXM to serve as a matching engine for buyers and sellers of cryptocurrencies (such as Bitcoin) and as a platform for cryptocurrency block trades, for large financial institutions and trading firms. Zero Hash will function as the money transmitter for the trading activity resulting from its affiliated exchange, SCXM.
Edward Woodford, co-founder and CEO of Seed CX 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.”
Last month, Seed CX was voted Best Institutional Digital Asset Infrastructure Provider by the 2019 Profit & Loss Reader’s Choice Awards. In addition, Zero Hash was named Innovator of the Year.
These licenses will enable Seed Digital Commodities Market and Zero Hash to facilitate digital asset trading and settlement for New York trading groups. The company currently offers trading and settlement for BTC, ETH, LTC, BCH, and PAX, and has the capability to settle in 20 different fiat pairs.
The virtual currency licensing process involves undergoing a comprehensive review of anti-money laundering, fraud, capitalization, consumer protection, and cybersecurity policies. In addition to the virtual currency license, Zero Hash also simultaneously received a money transmitter license from NYDFS, permitting Zero Hash to custody and settle fiat currency.
Seed CX also provides institutional investors and professional traders with the market structure and technology they need, in order to confidently add digital assets to their portfolios and investment strategies through excellence in trading, risk management and operations, and settlement and custody.
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.