Riot Blockchain to launch a regulated cryptographic market in the United States

Riot Blockchain plans to launch a regulated cryptographic exchange in the United States.

The US publicly traded company that faced regulatory problems for a sudden blockchain crash revealed in a document filed Friday with the US Securities and Exchange Commission (SEC) that the new entity will be called RiotX and will develop three main services: banking, commerce and a digital portfolio.

The application follows the company's change of direction after almost two decades in biotechnology, which then changed its name to Bioptix's Riot Blockchain and is now focused on the exploitation of crypto-extraction. The company subsequently acquired crypto-brokerage and announced that it plans to create a March 2018.

A month later, the SEC had sued the company following its sudden move to a blockchain-based business model and the resulting rise in share prices.

In 2018 and 2019, the company also changed its board of directors, starting with the resignation of its CEO.

In the SEC's case, released on March 14, the company says the new stock market should be run by its subsidiary RiotX Holdings Inc., adding that its primary focus is still mining in bitcoins.

For RiotX's banking services, the company announced the launch of an API created by the software provider SynapseFi. Users will be able to create accounts connected to accredited banking institutions in the United States, which will allow them to hold and transfer fiat or crypto assets.

The API will also track the location and identity of users "to prevent fraud and misuse of its RiotX exchange," the company said. This includes the use of the service in US states where cryptographic exchanges are not legalized, indicating a small number of customers.

As Riot Blockchain explained in the recording:

"The SynapseFi API will allow the company to know where the user is when they access RiotX, which will allow the company to prevent a user from Montana, a state where digital currency exchange is allowed, to visit neighboring Wyoming, where the use of RiotX in prohibited countries.

For future trading services, RiotX will work with the exchange software provider Shift Markets and terminate its contract with the Coinsquare Canadian Exchange in the SEC's investigation in 2018.

The company expects that RiotX will eventually be operational in all US states except Hawaii and Wyoming by the end of 2019. At the time of its registration, the company claims to have already obtained the $ 30,000. approval of five states.

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