'One-Stop Shop' for Crypto Mining and Trading to Launch Spot Market May 23

Cryptocurrency exchange and mining startup Bcause LLC is a few weeks away from launching its spot market.

Bcause has also applied for New York's BitLicense, but the team doesn't expect to launch in the state any time soon as the process can take up to two years, Flake said.

Ultimately, Bcause aims to be a one-stop shop for crypto mining and trading, including derivative contracts, and it's applied to the Commodity Futures Trading Commission to become a registered designated contracts market and a designated clearing organization.

Bcause also took advantage of the Prairie State's "Substantial history in the derivatives market and a good pool of talent," he said; in December it quietly hired George Sladoje, a former executive vice president of the Chicago Board of Trade and Chicago Stock Exchange, and later a COO of a Nasdaq subsidiary, OMX Commodities Clearing Company.

Currently, Bcause operates a data center in Virginia Beach, Virginia where it hosts miners for clients.

It believes combining this service with spot and eventually derivatives trading will give customers more confidence: they will be able to sell the crypto they mined on Bcause's facility easily on the spot market or secure futures contracts to sell them later at a comfortable price.

Bcause is not mining crypto for itself at this initial stage; it's only hosting customers' miners.

It's investigating possible proprietary mining in the future, Flake said.

In January 2018, Bcause struck a deal with the city of Virginia Beach, which granted $500,000 to the company for building the mining facility in town and creating new jobs there.

Bcause LLC mining farm image courtesy of the company.