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Riot Blockchain Plans Regulated Cryptocurrency Exchange In U.S.

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U.S.-listed company Riot Blockchain, a former biotech firm now focusing on bitcoin mining, is planning to launch a regulated digital currency exchange in the U.S. by the end of the second quarter of 2019. This was revealed in a filing with the U.S. Securities and Exchange Commission (SEC).

The company has been investigating and pursuing the regulatory pathway for the launch of a digital currency exchange in the U.S from the beginning of 2018. The digital currency exchange named "RiotX" is being developed and will be operated through its subsidiary, RiotX Holdings, Inc.

The filing says RiotX could provide a hedge against fluctuations in the price of bitcoin and other digital currencies by providing for the ready exchange of digital currencies like how a fiat currency exchange operates.

RiotX exchange will have three core services: (i) Banking Services; (ii) a Trading Engine; and (iii) Digital Wallet Services. It has engaged Shift Markets, Ltd.'s Trading Engine for the trading platform and SynapseFi's Banking Services to complete the development of RiotX.

As the Company obtains the necessary regulatory approval in a given jurisdiction, the Company intends to bring RiotX online in that jurisdiction, to RiotX online in all 50 U.S. states, except Hawaii and Wyoming, by the end of 2019.

As of the date, RiotX is licensed and/or approved in five states and has pending licenses in another 17 states, with review in another two states. The Company plans to be operational in 24 states by the launch date of RiotX by the end of the first quarter of 2019.

Throughout 2019, the Company plans to pursue additional money transmitter licenses in the U.S. for RiotX, as well as a New York State Bitlicense, which will license the RiotX exchange to engage in cryptocurrency business in New York. The New York State Bitlicense is seen as a benchmark license in the cryptocurrency business, and has traditionally been difficult to obtain.

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