ALBANY, New York—The New York Department of Financial Services (NYDFS) has granted virtual currency licenses to two subsidiaries of crypto derivatives provider Seed CX.
NYDFS Superintendent Linda Lacewell announced 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, CoinDesk said.
“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,” CoinDesk said.
‘Step in Growth’
“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.
Lacewell noted the approvals mean the NYDFS has now granted more than 20 of its virtual currency licenses since the regulation was finalized in 2015.