Crypto Derivatives Firm Seed CX Receives BitLicense From New York Regulators
- New York regulators grant BitLicense to the crypto derivatives firm Seed CX
- BitLicense is one of the most difficult licenses to acquire to operate a crypto-related firm
The cryptocurrency exchange Seed CX has just received virtual currency licenses to operate two of its subsidiaries that offer crypto derivatives solutions. The BitLicense was granted by the New York Department of Financial Services (NYDFS) and announced on Monday by the NYDFS Superintendent Linda Lacewell.
Crypto Exchange Receives BitLicense From New York Regulator
According to Linda Lacewell, Seed Digital Commodities Market LLC (SCXM) and Zero Hash LLC., operating under Seed CX, received the recognized and valuable BitLicense to operate in New York. This is one of the most difficult jurisdictions to acquire a license and operate a crypto-related business.
The firm has launched spot trading services this year, as reported by CoinDesk. The intention is to receive regulatory approval to offer forwards trading in the next months as well. With this BitLicense that the exchange was granted, SCXM is now able to work as a crypto exchange and as a platform for block trades.
They can also offer services to large financial trading firms with Zero Hash working as a money transmitter in partnership with the exchange.
The CEO of the platform, Edward Woodford, explained about it:
“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.”
With these approvals, it will be possible for institutional customers to have more opportunities to enter the market. Users will also have their funds protected when trading digital assets or dealing with them.
At the same time, earlier this month, the crypto exchange ErisX received a license from the U.S. Commodity Futures Trading Commission (CFTC). The firm is going to make digital asset futures contracts available for trade on its derivatives market using a derivatives clearing organization (DCO).