United States-Based publicly traded company Riot Blockchain has filed for launching a new regulated cryptocurrency exchange on the US market called RiotX by the end of 2019. In our cryptocurrency news of today, we read more on the decision.
The company filed with the Securities and Exchange Commission for the new exchange launch and according to the published documents by the regulator, RiotX Holdings Inc would operate as the new exchange. Also, the banking services of the new exchange would be handled by an Application Programming Interface that is created by SynapseFi-a software company.
The API has multiple functions, one of them being to serve as a security enhancement by tracking the location of the user in order to help prevent fraudulent use of the service. For example, the services of the new exchange cannot be used in US member states where this is not allowed as it is currently in Hawaii and Wyoming.
RiotX users will be able to create accounts that will be linked to the accredited banking institutions in the United States and will be able to transfer and hold both crypto and fiat currencies. According to the filing, the exchange will collaborate with another software company-Shift Markets. RiotX will work with Shift Markets after it terminated its contract with the Canadian exchange Coinsquare back in 2018.
As previously reported, back in 2018 in August, the SEC enhanced its investigation into the crypto mining company Blockchain Riot. The investigation of the regulator brought to issuing a subpoena and Riot Blockchain changed its name in order to have the word ‘’blockchain’’ in the hype of the industry as it shifted to mining.
Riot Blockchain stated:
“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.’’
The company expects to operate in all US states by the end of 2019 including the previous mentioned Hawaii and Wyoming.
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