NYDFS approved BitLicense issue to two divisions of the Seed CX exchange

The New York State Department of Financial Services (NYDFS) has approved the issuance of BitLicense to two divisions of the Seed CX cryptocurrency derivatives exchange, intended for institutional clients.

NYDFS Superintendent Linda Laswell (Linda Lacewell) said that two subsidiaries of Seed CX – Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC – received a BitLicense license. In addition, Zero Hash also received permission to provide services as a money transfer operator.

SCXM can now officially match the applications of buyers and sellers of cryptocurrencies in New York, as well as trade in cryptoactive assets. Services extend to large financial companies, for example, institutional investors.

“We are pleased that more than 20 companies that work with digital currencies have already received a license,” said Laswell. “Due to this, institutional clients will be able to trade in cryptocurrencies in conditions of reliable consumer protection, which is ensured through the implementation of standards for combating money laundering and cyber security.”

Note that this year Seed CX began to serve the trades on the spot market, and in the future the company plans to receive approval from regulators for the launch of forward contracts.

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In March of this year, NYDFS issued BitLicense to the cryptocurrency brokerage startup Tagomi Trading LLC. The company has become the eighteenth in a row licensed since, in 2015, the state of New York approved this system of regulation of cryptocurrency organizations.