Riot Blockchain, a Castle Rock, Colorado-based publicly traded company, is planning to launch a regulated crypto exchange in the United States. For that, the company has filed with the U.S. Securities and Exchanges Commission (SEC) that new entity will call RiotX, where the company plans to launch it by the end of Q2 2019. As per the company, its subsidiary, RiotX Holdings Inc, would operate the new exchange and will develop three main services- banking, trading, and a digital wallet. Its banking services would be handled by an Application Programming Interface (API) created by software company SynapseFi.
With this launch, RiotX users would be enabled to create accounts connected to accredited banking institutions in the U.S., and transfer and hold both fiat and Cryptocurrencies. As part of the filing, the exchange will also be collaborating with exchange software provider Shift Markets. In August last year, it was reported that the U.S. SEC has intensified its investigation into crypto mining firm Blockchain Riot, which first came to the regulator’s attention in the same year of April. The SEC’s investigation and subpoena information request began after Riot Blockchain changed its name to include Blockchain at the peak of industry hype, and moved their focus from biotechnology to mining. The regulator had previously stated that the firms that changed their name to include Blockchain would face increased scrutiny.
Regarding the upcoming trading services, RiotX will be working with exchange software provider Shift Markets, having it terminated its contract with Canadian exchange Coinsquare during the SEC investigation last year. The firm also expects that RiotX to eventually run in all U.S. states bar Hawaii and Wyoming by the end of 2019. However, at time of registration, the firm claimed to already have approval in five U.S. states.