New York grants BitLicenses to crypto derivatives firm Seed CX

15 Jul, 2019 | Updated: 15 Jul, 2019
by David Robb
New York grants BitLicenses to crypto derivatives firm Seed CX

Two more virtual currency licenses have been granted today, to crypto companies intending to operate in New York. The state's Department of Financial Services (NYDFS) has given the go-ahead to two subsidiaries of Seed CX to provide crypto derivatives in its jurisdiction. 

As U.S. states go, New York is one of the toughest for cryptocurrency firms to get a foothold in. Applying for the NYDFS virtual currency license, informally known as the BitLicense, is notoriously time-consuming and expensive, and leading crypto exchange Bittrex was recently forced to cease trading in the state after failing the process.

The NYDFS has now granted licenses to two of SeedCX's subsidiaries, which means that the company (which launched spot trading back in February) will now be able to offer futures trading to institutional traders. Derivatives contracts are an increasingly influential trading option in the crypto market, and are particularly appealing to established financial entities seeking to get involved with Bitcoin and other digital currencies. A strong correlation has been identified by some analysts between the rising popularity of BTC futures and the top crypto's recent bull run.

Seed Digital Commodities Market LLC (SCXM) will operate the online matching engine, linking up crypto sellers with buyers, while Zero Hash will operate as the money transmitter for the trades. 

According to Superintendent Lacewell of the NYDFS, "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. 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."

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