In its filing, the company has revealed that RiotX Holdings Inc. will run and administer the proposed exchange. In addition, the banking service of the exchange would be taken care of by an Application Programming Interface (API) developed by software company SynapseFi.
The API is intended to act as a security enhancement by monitoring user location in order to avoid deceitful use of the facility. For example, using the exchange in Wyoming and Hawaii would constitute improper user of the facility as it is not authorized in those locations.
RiotX customers will be permitted to establish accounts linked to licensed banking institutions in the US, and hold and reallocate both cryptocurrencies and fiat. According to the filing, the exchange will be joining hands with Shift Markets, a tech company which offers software for exchanges.
The SEC ramped up its inquiry into Blockchain Riot, a crypto-mining company that first drew the attention of the watchdog in April 2018. The inquiry and subpoena demand for requisite information from the SEC started after Riot Blockchain modified its name to include blockchain at the high point of crypto hype, shifting its emphasis from biotechnology to mining.
The watchdog had earlier noted that companies would face heightened scrutiny if they amended their enterprise name to include blockchain. Long Blockchain Corp., originally called as Long Island Iced Tea, a listed company, made a transition from its beverage manufacturing business to mining. Long Blockchain Corp. exited their beverage business a year after changing their name.