July 15, 2019
DFS GRANTS LICENSES TO SEED CX COMPANIES TO PROVIDE VIRTUAL CURRENCY SERVICES FOR INSTITUTIONAL CUSTOMERS
Financial Services Superintendent Linda A. Lacewell announced today that the New York State Department of Financial Services (DFS) 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. Since her nomination to lead DFS in February, Superintendent Lacewell has now approved four virtual currency licenses.
“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,” said Superintendent Lacewell. “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.”
DFS 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.
"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," said 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.”
DFS became the first state or federal agency in the United States to supervise virtual currency with the promulgation of its landmark regulation in 2015. DFS, which remains committed to supervising and promoting financial services market innovations, licenses virtual currency exchanges, technology-based money transmitters, and online lenders operating in New York.
Additional information regarding DFS’s regulation of New York’s virtual currency marketplace can be found here.