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Riot Blockchain Acquires a Miami-Based Futures Brokerage

Riot Blockchain company did not announce any release date and said it is investigating the launch. The acquiring of Logical Brokerage may help improve publicity of the company.  

Riot Blockchain company has acquired 92.5 percent of Miami-based Logical Brokerage Corp and is contemplating launching a digital currency exchange and a futures brokerage within the United States. The company says it will start investigating the launch and did not give a date for the launch.

The information is according to a filing with the Securities and Exchange Commission this week. Launching its own futures products means it will compete with the products provided by Cboe and CME in the country.

Logical Brokerage is already registered with the Commodity Futures Trading Commission. Again, Logical Brokerage is a member of the National Futures Association.

Therefore, the acquisition will boost Riot Blockchain’s reputation. The company was under criticism for relying mainly on blockchain hyper when the stock price went up from $8 a share to roughly $40 after rebranding from Bioptix Inc. Some shareholders filed three class action complaints claiming the company violated securities laws.

The company said it will also start announcing results of its mining operations through monthly reports.

Since it has income from other operations, its financial status does not depend on mining alone. Additionally, the production of mining operations will depend on the number of machines online at any given time as well as the volatility in the markets.

Heightened review process

The announcement and plans to launch futures come at a time when the Commodity Futures Trading Commission is heightening the review process for the futures products. This is in addition to expecting the companies launching futures to self-certify their products.

Already, Chairman J. Christopher Giancarlo rolled out, in January, a checklist to help regulators when exchanges introduce new products related to cryptocurrencies.

Moments after CBOE and CME launched futures products, the Futures Industry Association (FIA) expressed concern that they would pay for outstanding Bitcoin futures contract caused by cryptocurrency volatility.

Thus, the release of the checklist was an action towards the same by CFTC.

What do you have to say about the Financial Institutions and Crypto Banking towards launching digital currency exchanges?  Share with us on Twitter and Telegram.

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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