In the latest blockchain news, Riot Blockchain is making a bold move in the crypto space. Apparently, it is all prep and ready to introduce a regulated crypto exchange in the United States. Here is everything about it in a nutshell.
Launching A Crypto Exchange
According to the official report, the U.S.-based publicly traded company unveiled a filing with the country’s Securities and Exchange Commission (SEC), suggesting that the crypto exchange will be called RiotX. Also, the filing claims that it will attempt to develop at least three main services, which are trading, banking, and a digital wallet.
It is worth noting that in the past, Riot Blockchain faced a handful of regulatory issues due to a sudden transition to the blockchain. The application, in particular, will reportedly follow its change in business focus after nearly two decades in the Biotech sector. This was during the time when its former name was Bioptix. Come October 2017, the firm decided to shift all of its focus to cryptocurrency mining. Later on, it was successful in acquiring a crypto brokerage and announcing its plan to develop an exchange sometime in March last year.
Unfortunately, the move proved to be a legal issue. The SEC decided to subpoena the company a month after its sudden pivot to a blockchain entity model. The move also saw a hike on its stock price.
During 2018 and 2019, Riot Blockchain also made some interesting changes on its board of directors. The change started with the resignation of its very own CEO.
In the SEC filing, which has been made public on March 14 this year, the firm claimed that the upcoming exchange is responsible for handling its subsidiary called RiotX Holdings Inc. It further added that the main focus of the crypto exchange would be mining Bitcoin, the world’s leading cryptocurrency.
As far as RiotX’s banking services are concerned, Riot Blockchain said that will launch an API specifically designed by software provider called SynapseFI. Through these services, users will have the ability to create accounts that are directly associated to U.S. accredited banking institutions. As such, they will be able to hold and transfer them either in crypto assets or fiat.
Furthermore, the API will be tracking the location and identity of each user in an attempt to prevent the possibility of “fraud and improper use” of the crypto exchange. Interestingly, this would include the use of the service in the country where crypto exchanges are not considered legal.