New York State Department of Financial Services (DFS) announced on Monday it has approved the applications of Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC for virtual currency licenses and has approved Zero Hash for a money transmitter license. SCXM and Zero Hash are both subsidiaries of Seed CX Ltd.
DFS reported it 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. While sharing more details about the licenses, NYDFS Superintendent Linda A. Lacewell, stated:
“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.”
Edward Woodford, Co-Founder and CEO of Seed CX, also commented:
“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.”
DFS claims it became the first state or federal agency in the United States to supervise virtual currency with the promulgation of its landmark regulation in 2015. Since her nomination to lead DFS in February, Superintendent Lacewell has now approved four virtual currency licenses.