According to reports, Riot Blockchain is looking to launch a U.S based regulated crypto exchange.
The U.S based publicly traded company has faced regulatory issues in recent months. This is as a result of a sudden pivot to the Blockchain. Per the report, the U.S Securities and Exchange Commission (SEC) received a filing from Riot Blockchain this Friday. According to the filing, the new regulated crypto exchange will be called RiotX. The new entity will develop three major services including trading, banking, and a digital wallet.
Bitcoin (BTC) Price Today – BTC / USD
Riot Blockchain Shifting After About 20 Years in the Biotech Sector
The application for a new regulated crypto exchange by Riot Blockchain follows the DLT firm’s change in business goals after nearly two decades in biotech. The shift began when the company rebranded from Bioptix to Riot Blockchain. Shifting its focus to crypto mining as of October 2017. Riot Blockchain subsequently acquired a crypto brokerage revealing that it planned to create an exchange in March of 2018.
It should be recalled that the company was subpoenaed by the Securities and Exchange Commission one month later after its sudden shift to the Blockchain business model. This resulted in a stock price hike, giving rise to the SEC’s decision to subpoena the company.
Riot Blockchain Changed Board of Directors From 2018 to Date
Beginning from 2018 to this day the company has changed its board of directors, starting with its CEO’s resignation.
In the SEC filing, that became public knowledge on March 14, Riot Blockchain explains that its new exchange will be handled by RiotX Holdings Inc, a subsidiary of the company. It added that the game goal remains Bitcoin (BTC) mining.
As for RiotX’s banking services, Riot Blockchain says it is going to launch an API. The API will be created by software solution SynapseFi. It will allow users the ability to create accounts that are connected to fully accredited banking institutions in the United States. This will allow them the ability to hold and transfer fiat or cryptocurrencies.
The API is also designed to track the location and complete the identification of users “to prevent fraud and the improper use of the RiotX exchange.” This includes using the service in states where crypto trading isn’t legalized. It points toward a restricted range of users to start with.
RiotX to Collaborate With Shift Markets for Future Trading Services
According to Riot Blockchain in the registration:
“SynapseFi’s API is meant to allow the company to know where users are when accessing RiotX. Enabling the company to stop a user from Montana, a state that permits the exchange of cryptocurrencies, from traveling to a neighboring State like Wyoming, where exchange of digital assets is prohibited, meaning using RiotX in a prohibited area.”
Regarding its upcoming trading services, Riot Blockchains extension, RiotX work with exchange software solutions Shift Markets. The company terminated its contract with the Canadian crypto exchange Coinsquare as a result of the 2018 SEC investigation.
The firm hopes that RiotX will exclusively operate in the U.S. In all states except Hawaii and Wyoming. As of the time of the registration, the company claims to have approval in five different states in the country.