N.Y. Department of Financial Services Grants More Cryptocurrency Licenses

On July 15, 2019, the N.Y. Department of Financial Services (the “DFS”) announced that it granted virtual currency licenses to two subsidiaries of Seed CX Ltd. as part of its supervisory authority under the so-called “Bitlicense Law“, bringing the total to four since DFS Superintendent Linda Lacewell became head in February.  Seed Digital Commodities Market LLC is a matching engine for buyers and sellers of cryptocurrencies and a platform for block trades.  In addition to the virtual currency license, Zero Hash LLC is a money transmitter for its sister entity.  The Bitlicense has been controversial in the cryptocurrency community as heavy handed regulation of a free-wheeling “currency”, but it appears to be gaining traction with its money laundering rules as traders seek to distinguish themselves from the early use of the currency to facilitate illegal and illicit transaction.