Riot Set To launch its US Focused Crypto Exchange By July

By Prashant Jha

Riot Blockchain, a crypto mining farm has filed an affidavit with SEC on March 14th to open its fully-regulated crypto exchange in the United States by the June end or at the beginning of July. Riot has partnered with software company SynapseF1 and invested around $250,000 till now towards the exchange project.

The company has also formed a subsidiary called RiotX Holdings which would officially be responsible for taking care of the operations on the future crypto exchange. The estimated budget is set to expand up to $2.5 million after the launch.

SynapseF1 To Facilitate Banking API

The software partner for Riot, SynapseF1 is set to facilitate banking services through an API which would connect users account to the US-accredited banks. The software would also be responsible for tracking the user location and identities, in order to prevent any fraudulent activities on the exchange.

According to the SEC filing made by Riot, the role of Synapse has been explained as,

“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 filing suggests that the exchange services would be available in all 50 states except Hawaii and Wyoming by the end of 2019.

The Exchange Launch Might Get Delayed Due to Regulatory Restrictions

In a statement to the press, the Riot blockchain has acknowledged that the launch of its crypto exchange might get delayed by a few weeks, considering the regulatory and capital restrictions. Even the SEC filing warns the users of the risk involved with the investment in the crypto exchange.

The filing says if the Riot Blockchain fails to deploy RiotX, the exchange it stands a chance to lose most or all of the capitals invested into the project. However, the Riot team is pretty ambitious and confident over the launch and believes that launching the exchange services in 48 states is an achievable feat.