Seed CX, a regulated bitcoin trading platform for professionals, has achieved a significant feat in its development, as two of its subsidiaries, Seed Digital Commodities market LLC (SCXM) and Zero Hash LLC, have obtained virtual currency licenses from the New York State Department of Financial Services (DFS). Securing the BitLicense will enable SCXM to function as a matching engine for crypto trading activities, while Zero Hash will operate as a money transmitter for SCXM, according to a press release on July 15, 2019.
Seed CX Gets the Elusive BitLicense
As stated in its press release, the New York Department of Financial Services (DFS) under the leadership of Linda A. Lacewell, has approved the BitLicense applications of two Seed CX subsidiaries, Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC.
Specifically, the DFS has given SCXM the go-ahead to operate as a matching engine for buyers and sellers of bitcoin and other blockchain-based digital assets, as well as a platform for block trades for sophisticated investors and institutional traders.
Zero Hash, on the other hand, will function as the sole money transmitter for the SCXM exchange.
The Next Step
Founded in 2015 by Brian Liston and Edward Woodford, Seed CX provides institutional investors with a market for trading and settling spot digital assets via its subsidiaries.
Seed CX is backed by Bain Capital Ventures and other highly reputed firms including F2Pool, Dekrypt Capital, Origin Capital and more.
Commenting on the firm’s BitLicense success, Edward Woodford, co-founder and CEO of Seed CX stated that the license represents the “next step” in the company’s growth and it will enable Seed CX to expand its trading and settlement services to New York-based firms through its subsidiaries.
In his words:
“We will be able to expand trading and settlement services to New York firms through our institutional platform that provides institutions with a robust technology, operational support and regulatory compliance they need.”
Seed CX has now added the elusive BitLicense to its growing list of registrations from various regulators including the CFTC (Swap Execution Facility), FinCEN (Money Services Business), NFA (Introducing Broker) and more.
Since the introduction of the BitLicense regulation by Benjamin Lawsky, New York’s first Superintendent of Financial Services earlier in July 2014, only 21 bitcoin and fintech firms have succeeded in securing the license.
So far, holders of the much-criticized license include Square, Robinhood, Bitstamp, Tagomi Trading Cottonwood, Genesis Global Trading and NYDIG, to mention a few.
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