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Riot Blockchain Set to Lauch a Fully Regulated Crypto Exchange in the US

UTC by Julia Sakovich · 3 min read
Riot Blockchain Set to Lauch a Fully Regulated Crypto Exchange in the US
Photo: Riot Blockchain, Inc. / LinkedIn

Riot Blockchain is planning to set up a U.S-based regulated cryptocurrency exchange. It has already filed with the SEC.

Launching a crypto exchange is not the easiest task in the United States, in some states that still haven’t joined the crypto-positive camp it’s absolutely impossible. Nevertheless, there are a lot of companies that are eager to try.

Riot Blockchain to Change the Game

One is them is Riot Blockchain that is going to set up a fully regulated cryptocurrency exchange in the U.S. It is known that Riot has already filed an application with the main country’s regulator working in this sphere – the U.S. Securities and Exchange Commission (SEC).

As it has been revealed the new platform will be functioning under the name RiotX and will offer three key services to its end-users: banking, digital asset trading and a digital asset wallet.

Though the company itself is not a young one, it entered the crypto industry less than 2 years ago in October 2017. Previously, it was working in biotech for almost two decades and was known as Bioptix but then it changed its name to Riot Blockchain, went through a serios rebranding and shifted the focus of its activities to crypto mining.

Then it acquired a crypto brokerage Logical Brokerage Corp based in Miami and announced its plans to launch a digital currency exchange and  futures brokerage services within the United States in March 2018.

Nevertheless, the firm faced with some major regulatory issues due to its unexpected shift to blockchain and its new business model which resulted in its stock price increase.

The entire year of 2018 and the first months of 2019 were full of changes for the firm. It changed its board of directors including its CEO.

Fully Regulated Crypto Exchange

And now it wants to set up a new crypto exchange. According to its SEC filing, the new exchange is to be operated by the company’s subsidiary RiotX Holdings Inc, while the head organization will be still focused on Bitcoin mining.

As for the banking services that will be offered by RiotX, it is expected that the company will launch an API developed by software provider SynapseFi. Users will have an opportunity to create accounts that will be connected to accredited U.S.-based banking institutions. It will let them keep and transfer both fiat and digital assets.

The company also promises that the application of this API will help them to ensure a high level of protection from fraud and other wrongdoings on the RiotX exchange as the API will be able to track the location of users and their identity.

The fact that the API will detect the location of users means that the use of the exchange will be prohibited for those users from the states where crypto exchanges are not permitted.

As for the trading services, the firm revealed that RiotX will start cooperation with exchange software provider Shift Markets as it terminated its contract with Canadian exchange Coinsquare in 2018 due to the SEC investigation.

It is planned that RiotX will get an opportunity to work in all the states of the U.S. by the end of 2019, and the company hopes to get approvals at least from five states by the time when the exchange will be registered.

Altcoin News, Bitcoin News, Blockchain News, Cryptocurrency news, News
Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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