Riot Blockchain has filed with the U.S. Securities and Exchange Commission (SEC) to launch a regulated crypto exchange in the country.
The entity which will be known as RiotX is expected to develop three main services: banking, trading and a digital wallet.
The firm which was previously known as Bioptix had it focus primarily on Biotechnology for almost two decades before finally announcing it is switching over to crypto mining in October, 2017. It however changed its name to Riot Blockchain.
Riot Blockchain eventually acquired a crypto brokerage , with the aim of an exchange by March 2018. A move which would later force the SEC to issue a court order against the firm a month later due to the unexpected deviation to a blockchain business model, which resulted to an increase in the price of stock.
More so, between 2018 and 2019 following the resignation of its CEO, the firm changed its board of directors.
According to the SEC filing which was released on March 14, the firm reiterated that the new exchange will be managed by its subsidiary, RiotX Holdings Inc, while noting that its primary focus is on bitcoin mining.
Further more, to facilitate the RiotX’s banking services, the firm affirms it will launch an API created by software provider SynapseFi. This will aid users in creating accounts connected to accredited banking institutions inside the U.S., granting them the freedom of holding and transferring either fiat or crypto assets.
The API will also track the location and identity of users “in order to prevent fraud and improper use of its RiotX exchange”, the company said. This includes the use of the service in U.S. states where crypto exchanges are restricted or not legalized.
As Riot Blockchain explained in the registration:
“SynapseFi’s API will enable to Company to know where the user is when accessing RiotX, thereby enabling the Company to prevent a user from Montana, a state where the exchange of digital currencies is permitted, from traveling to neighboring Wyoming, where the exchange of digital currencies is not permitted, and using RiotX in the prohibited jurisdiction.
RiotX will be working with exchange software provider Shift Markets, having terminated its contract with Canadian exchange Coinsquare during the SEC investigation in 2018.
At the time of registration, the firm claims it already has approval from five U.S. states, and is expecting to get RiotX across every U.S. state including Hawaii and Wyoming by the end of 2019.