Based on a recent report, cryptocurrency licences have been given to two secondary firms of crypto derivatives provider—Seed CX by the New York Department of Financial Services (NYDFS).
Linda Lacewell, the Superintendent at NYDFS recently made it known that the agency has awarded digital currency licences to Zero Hash LLC and Seed Digital Commodities Market LLC (SCXM) both of which are operating under Seed CX. Zero Hash received a money transmitter licence while SCXM got BitLicenses.
The Chicago-based crypto exchange which is also supported by Bain Capital-backed crypto launched spot trading in the earlier part of 2019 with the hope that it will be approved by regulators and be able to offer forwards trading ( a commodity similar to virtual currency futures contracts) in the next few months.
Co-founder and CEO of Seed CX Edward Woodford said that:
“We’re offering truly institutional level support. We are live,”
He further said that:
“In February we’re going to be offering more trading pairs, so we’re going to be offering up euros and Japanese yen,”
Since it now has a BitLicense, SCXM will be able to legally serve as a matching engine for crypto buyers and sellers, in addition, in partnership with Zero Hash which will act as the money transmitter, it can perform the duties of a platform for block trades.
Woodford said that:
“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.
According to Lacewell, the NYDFS has now grated more than 20 virtual currency licenses since the regulation was finalized in 2015.