Seed CX’s Subsidiaries Win Two Coveted Bitlicenses in New York

Institutional-focused crypto exchange Seed CX has received a coveted license to deal in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in New York. Two subsidiaries were each granted a so-called BitLicense by the NY State Department of Financial Services (NYDFS), joining only 20 other companies that were granted this license, which allows to legally operate as a money transmitter and cryptocurrency exchange.

The highly-sought-after approvals authorize Seed Digital Commodities Market (SCXM) to serve as a matching engine for cryptocurrency trades, while Zero Hash’s license allows Seed CX’s settlement arm to operate as the money transmitter for the trading activity resulting from its affiliated exchange.

The Zero Hash settlement service currently supports spot settlement of fiat and cryptocurrencies and will be launching support for repo, forwards, and other product types in the coming months. The product was already implemented into the trade cycle of traditional brokers, single-dealer platforms, FX ECNs, and other institutional trading venues.

Seed CX has previously registered its Zero Hash service as a Money Services Business and FX Dealer with FinCEN. Zero Hash is also a registered Money Transmitter in over 30 US states.

"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,” said Edward Woodford, co-founder and CEO of Seed CX.

Complicated regulatory structure

To maintain a BitLicense license, a provider must fulfill various reporting requirements and comply with standards on anti-money laundering, cybersecurity, and consumer protection.

While US authorities have been relatively active on the subject of cryptocurrencies, the local community has had its ears filled with conflicting talk from different regulators and various state legislatures.

New York is the only state that requires firms dealing in digital assets to obtain a license to operate. The Empire State has established a strong state-based Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, but the approach has been widely maligned by the crypto community for being one of the strictest laws governing this type of business.

The news follows other, similar stories of progress for Bitcoin companies in the US, though cryptocurrency regulation still happens largely on a state-by-state basis.