SCXM has been authorized as a platform for large financial institutions and trading firms, and Zero Hash will serve as a money transmitter.
The New York State Department of Financial Services (DFS) awarded two subsidiaries of Seed CX, a Chicago-based cryptocurrency exchange, with virtual currency licenses.
In a press release, DFS superintendent Linda Lacewell announced the approval of virtual currency license applications from Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC. Zero Hash has also been granted a money transmitter license.
“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,” Lacewell said, per the release.
SCXM has been authorized as a platform for crypto block trades, large financial institutions and trading firms. It will also function as a matching engine for cryptocurrency buyers and sellers. Zero Hash will act as the money transmitter for the trading activity that results from SCXM.
According to the co-founder and CEO of Seed CX, Edward Woodford, the new licenses will help the exchange grow and become leaders in the 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,” Woodford said. After the passage of new regulations in 2015, the DFS began requiring digital currency businesses in New York State to operate with a license, known as a BitLicense. In October 2018, it approved Coinbase to offer custody services in the state of New York.