Seed CX Subsidiaries Receive Bitlicenses From New York Regulator
Two subsidiaries of cryptocurrency derivatives firm Seed CX have received Bitlicenses from the New York State Department of Financial Services.
New York state financial regulators have issued virtual currency licenses to two subsidiaries of crypto derivatives firm Seed CX: Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC.
In a press release published on July 15, Financial Services Superintendent Linda A. Lacewell announced that the New York State Department of Financial Services has approved the applications of SCXM and Zero Hash for virtual currency licenses. SCXM operates as a spot exchange for digital asset commodities while Zero Hash is a calculation and settlement agent for digital assets.
With the license, SCXM will now be able to provide a matching engine service for buyers and sellers of digital currencies, as well as block trades for financial institutions and trading firms. Zero Hash — which also received a money transmitter license — will operate as the money transmitter for trading activity resulting from SCXM, which is its affiliated exchange. Lacewell said:
“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.”
Earlier in July, Chicago-based crypto exchange ErisX procured a derivatives clearing organization (DCO) license from the United States Commodity Futures Trading Commission. ErisX is planning to make digital asset futures contracts available for trade on its regulated derivatives market later this year via its new DCO.