Seed CX derivatives granted New York BitLicense

Seed CX derivatives granted New York BitLicense

On July 15, it was announced that Seed Digital Commodities Market LLC and Zero Hash LLC, two subsidiaries of the crypto derivatives provider Seed CX, were granted BitLicenses from the New York Department of Financial Services (NYDFS). This now moves the total number of licenses granted by the department to 20 since they first began issuing them in 2015.

The issuing of the license was announced in a statement by NYDFS Superintendent Linda Lacewell. Zero Hash also received a money transmitter license from the agency. This allows Zero Hash to act as a calculation and settlement agent for all forms of digital assets.

Bain Capital launched the spot trading services earlier this year, hoping to receive final approval from the regulatory agency. The approval would grant them the ability to offer forwards trading before the end of the year.

The license grants the two derivative subsidiaries the ability to provide a matching engine service for both buyers and sellers wanting to trade digital currencies. It also grants them the authority to block trades for financial institutions and trading firms. This will allow them to trade with some of the largest financial and trading firms.

In the statement, Lacewell explained:

“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.”

This is a big boost for Seed CX, as the company looks to expand. “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,” Seed CX CEO Edward Woodford said in a statement.In addition, he added:

“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.”

Earlier this month, ErisX, a Chicago-based crypto exchange was able to procure derivatives clearing organization license (DCO) from one of the most important federal agencies related to these commodities, the United States Commodity Futures Trading Commission. It is expected that ErisX is planning to offer digital asset futures contracts for trades on its regulated derivatives market. This is expected to occur by the end of this year.

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