Seed CX Subsidiaries Granted Virtual Currency Licenses

Two of Seed CX’s subsidiaries, Seed Digital Commodities Market (SDCM) and Zero Hash, have received approval from the New York Department of Financial Services (NYDFS) for a virtual currency license.

Seed CX, through its subsidiaries, offers an exchange for institutional trading and settlement of fiat and digital asset products. The firm also plans to offer a market for Commodity Futures Trading Commission (CFTC)-regulated digital asset derivatives.

The NYDFS licenses will enable SDCM and Zero Hash to facilitate digital asset trading and settlement for New York trading groups. The company currently offers trading and settlement for bitcoin (BTC), ether (ETH), litecoin (LTC), bitcoin cash (BCH), and paxos standard (PAX), and has the capability to settle in 20 fiat pairs.

SDCM matches bids and offers in digital assets, whereas Zero Hash settles the transactions executed on the platform and on other trading venues. Due to the bifurcation of the execution and settlement process, each entity requires its own virtual currency license.

The virtual currency licensing process involves undergoing a review of anti-money laundering, fraud, capitalisation, 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.

“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,” says Edward Woodford, co-founder and CEO of Seed CX. “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.”

Through its various subsidiaries, Seed CX is now a swap execution facility (SEF) under CFTC rules, an introducing broker under the National Futures Association (NFA) rules, a money services business and an FX dealer under FinCEN, a registered money transmitter in 34 states, and has applied for a broker-dealer registration with FINRA.

Last month, Seed CX was voted Best Institutional Digital Asset Infrastructure Provider and Zero Has was named Innovator of the Year at the 2019 Profit & Loss Reader’s Choice Awards.

Galen Stops

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