I shall not quote the full wall of text Skoutz, we are not offering kiosks at the initial launch other than at selected locations (Pafos & Larnaca airports and the two biggest malls). Our kiosks will be providing information and the ability to sign-up in advance for an account.

Cyprus has a very conservative population whilst providing a way to take control of their own money, we cannot introduce too many changes in their daily routines, mainly kiosks are used to buy fruit smoothies, frozen yogurt and frappes asking them to engage with a kiosk at this moment in time would be an optimistic request at the very least. Once we have established the trust between our customers and the brand we can start introducing new methods of interacting with our business.

We have been told we can operate, that is not in question. We want to be regulated for transparency and the benefits this brings on the PR front locally. I wouldn't have released any information at all if I didn't know for certain that we can operate.

We have a very strong hand going into the lobbying process, overall there is a risk but it is less than slight in the eyes of those providing the advice to us.

I didn't want it to seem as though I was avoiding the question, but I felt it was more appropriate for TAT to answer.

We are absolutely certain we could open our branches tomorrow and offer our planned services, there are no applicable regulations that would require us to obtain any licenses here in Cyprus. We are being pro-active and lobbying to change this, so we can offer lending products and other financial products. We are developing our systems and all policies and procedures to fit with the requirements placed on other financial institutions, this is still very much square pegs into round holes. The early indications from our lobbying efforts show that they understand this problem and we are moving forward to address this matter.

There needs to be an understanding that we are not operating within the US so guidelines set by FinCen and regulatory bodies in the US have no bearing whatsoever on our operations in Cyprus.

A route for non-bitcoin customers, maybe........ http://www.bitcointrezor.com/

The trezor hardware wallet is great until you lose it, we want to ensure that as little of a conscious effort as possible has to be made by our customers towards security above and beyond what they are already subjected too.

Also, stumbled on this, and see parallels possibly (although im still trying to understand the legitimacy of these, if any?)....... https://www.bitmit.net/en/shop/c/23-money/8-credit-cards

We will not be offering anonymous anything, one of the biggest concerns from the regulators was the misrepresentation that Bitcoin is completely anonymous. Once we explained this in detail, they are much more receptive to the idea.

Will you have a recognizable presence/sponsership at the Amsterdam Conference?

I am speaking at the conference.

1) In your prospectus you state that you will accept Cash, SPEA and Wire transfer methods for deposits and withdrawals of Euros.
How does that not require a full banking license under current Cyprus / European Banking Regulations?

We are selling Bitcoin, something that is not considered "Money" here in Cyprus, although we are proactively lobbying to change this.

2) In your initial post here you state that customers will receive an 8-digit account number.
Why would a customer want that account number? For SEPA he will already be provided with the IBAN / bic combination.
For pure bitcoin transactions he only needs a bitcoin private / public key pair.

Our target demographic is not the existing Bitcoin community, we are providing a way for the average non-technically minded man/woman in the street to use the Bitcoin protocol, feel free to go and ask 5,000 people in your local town or city as to which they prefer using: 31uEbMgunupShBVTewXjtqbBv5MndwfXhb or 12121212 The response will be overwhelmingly in favor of the 8 digit number.

The acceptance of SEPA and Wire transfers are enabled through a strategic partnership with a fiduciary financial service provider, we are currently under NDA's with three potential partners, however we are hoping to be in a position to announce the partnership at the Amsterdam conference.

3) Your prospectus says that Bitcoin wallets are generated, printed, loaded and sealed in the customer's presence to ensure security. They will be subject to a 0.5% deposit fee and an optional additional 0.5% fee to retain the wallet in the branch's vault.
How do you plan to charge the deposit and storage fee?
Will you keep the private keys of the generated wallets to be able to "deduct" the fees?
How is that secure for the customer?

This is only for those that want to purchase Bitcoins and walk out with them in a sealed paper wallet. The fees would be deducted at the time of exchange, not after the wallet has been funded.

4) You project BTC/EUR price increases for the first two quarters, not any further. Why?

Following this period our future income will not be dependent upon this factor due to the products we shall be adding to our offerings, following the first two quarters of trading will dictate our strategy towards the growth and expansion of our business, which in turn will provide a better indication at the rate we shall be adding liquidity to the market.

5) Your prospectus ends with a future outlook which only talks about the next 2 years. This is VERY short-term for a financial institution. If customers trust you with their money, they expect you to have a plan for more than two years.
Please provide the classic 5 year and 10 year outlooks.

We are writing the handbook on this, as we are the ones providing the solutions for the mass adoption of Bitcoin first. After the first two quarters it will provide a better insight into our 5 and 10 year plans. We have guidelines as to where we want to be within 5, 10, 15 and 20 years. One could argue that the sign-up rate in January, February and March 2014 will be a strong indication as to the rate at which people will adopt to what we are offering.

6) You tell us that the BEE software and network infrastructure is currently being developed. Are you sure you can meet your roll-out projection of early 2014?

100% yes.

7) Your flagship branch is currently being designed and constructed. What is it?
Is it being designed or being constructed?
How far along are you? Will it be ready for your early 2014 launch?
Also, you provide two pictures, one where it says NEO on a banderole around the whole building, and one where only the leftmost "shopwindow" ins marked as the branch location. Which is it?

The interior designers are now incorporating the branding into the designs for the decor of the branch. The builders are creating the secure partitions ready to commence the internal renovations as per the interior designers final plans. This branch will be delivered complete at the end of December, ready for the soft opening in January to commence the account sign-up process.
Both, our offices are on the first floor of the building, the offices have a veranda with a glass wall along the outer edge that we can utilize to brand the full length and width of the building as per the first image.

8 ) Seeing that you are developing your own payment network, how do you plan to break the dominance of the current monopolist?
Will your cards work at each and every terminal of your competitor (i.e. will it use the same protocol)?
Will your cards work at all ATMs in use throughout cyprus?
If not compatible, how many merchants willing to implement your POS Terminals do you currently have signed for the launch in early 2014?
How many for the months after that?

Our network is independent from the existing VISA/MasterCard network, no they will not be useable at the ATM's however we do have the ability to offer "cashback" at the merchant terminals, in effect turning every merchant into an ATM machine (Further details will be provided on this). Many merchants do not accept card payments from the existing monopolist because of the high fees and poor settlement terms (I have recently seen a quote of 60 day settlement terms!). By removing all barriers to entry such as zero fees to set-up the merchant account, vastly lower transaction fees, and almost instant settlement terms, we are providing ourselves with a solid platform to ensure a high adoption rate.

We are already ahead of schedule towards our target of indicated acceptance, it would be unprofessional for me to quote figures until contracts are signed and sealed. Our legal team have the Bee contracts on their list of tasks however the lobbying efforts are taking precedence because the content of the contracts will be dependent upon the outcome of that process.

We are taking extra verification steps with all parties involved to demonstrate we are who we say we are coupled with evidence of our strategic partnerships.

I was shocked too that it took 5 pages for the first mention of a scam.
This is where we live, also to spark mass changes you need a "big bang event" the theft of peoples life savings was this event. Cyprus is also not too big to gain widespread adoption, but not too small for it to go unnoticed on a global scale.


The dates will be announced shortly.


Initially the possibility of people withdrawing Bitcoin to the wild is slim because that would entail them understanding how to use Bitcoin in its raw format, we expect that until we open up the possibility for opening accounts from within the wider European Union direct Bitcoin withdrawals will be almost non existent.

The capital controls are under review in the September meeting of the Troika however this is of no concern because we are signing off on a partnership shortly that will enable the physical notes to remain in Cyprus whilst providing us with those funds electronically outside of the traditional Cypriot banking infrastructure.  This ensures that we have zero exposure with our "competitors", ensuring they cannot try and complicate matters with frozen accounts, temporary holds etc.

We have spent the last 12 months making the necessary contacts with both regulators, government officials and key influential groups such as those now challenging the EU over the bail-ins. The initial lobbying efforts have been very promising, the president himself has spoken about the need for a "Plan B". One of the joys of Cyprus being small is the 2 degrees of separation, in larger countries this would have been a much drawn out process after speaking with personal assistants for months just to ensure a letter is passed onto the relevant person. Here we don't have that problem.


We are taking deposits from people in exchange for Bitcoin, current regulations entails this is no different from buying a loaf of bread from the bakery and the bakery providing storage of the bread. In Cyprus Bitcoin isn't "money" yet, however we are the ones lobbying to change this. All of our policies, procedures and systems are planned to be compliant with existing regulations. We want that legal framework to adhere too because from a PR perspective we will not be operating within grey areas of the law.

I will answer your PM once I have caught up on the questions here in this thread.


1. We will implement a hedging strategy utilizing our own reserves, this strategy will be constantly changing, we will also be setting the price locally to ensure that sudden falls in price are not realized on the front line immediately. This gives us an opportunity to increase trading activities to strengthen our positions. A good trader(s) will make gains under volatile conditions, irrespective of the direction of the movement. Sorry I cannot provide the exact strategies for different scenarios but doing so would be like playing poker with see through cards.

2. It is not a case of difficulty, it is based on time demands. As I am certain any potential investor wants me and the team to concentrate on the business and not handling asset transfers all day. My time is extremely limited as it is, I had to move 5 meetings today (Sunday) to ensure I could have some time to answer questions.

3. We provide the opportunity for our customers to buy Bitcoin and store them in a user friendly and secure wallet, some of our products remove the risk of volatility away from the customer and onto ourselves, we will also be providing a method for merchants to accept Bitcoin payments. In the near future we plan to offer insurance products, lending services and other financial related products.

That is in fact correct.

Thank you!

I like to use Reddit as a soundboard, its definitely happening already, we will release more information about partnerships and significant progress that we are making on a daily basis throughout the run up to the opening.

TAT have an offering with the XBOND that is detailed in the prospectus.

Thank you.

We are addressing the issues faced by Bitcoin for adoption by the masses, for large numbers of people to use Bitcoin there are certain hurdles to overcome such as the complexity of cryptography, if everyone you talk to about Bitcoin doesn't emotionally switch off from the conversation once it becomes "technical", then you only have technical minded friends. Can everyone be responsible for the security of their private keys? Does everyone have a smartphone and will merchants go out and buy a tablet/computer to integrate with Bitcoin payments?

We are addressing these issues.

Initially we are restricting it to Cypriot residents, because of a few contributing factors, The amount of man hours required to process account openings, we do not want to create a large back log of applications, thus impacting on the initial customer experience and the legalities outside of the European Union.

We are planning on allowing the online registration for accounts within the EU from May onwards, this exact date will be determined by the local rate of sign-ups and the amount of man hours that we can apply to the opening up of additional new accounts.

The rest of the world will have to wait for an alternative to us or for us to reach their location, or they can move to Cyprus, the weather is always good.

We shall operate our own reserves for trading both EUR & BTC and not deposits, our strategy will be constantly monitored and adjusted. Not every BTC and Euro will be derived from the public markets and we also have several options on futures. Our strategies will be kept private because we do not want to buy off the back of our own hype, this will be partly unavoidable but we will be doing everything we can to mitigate that risk.

If someone withdraws €5m and other withdrawals that day alone make the total €7m, we will also take deposits that day at the same price point, even if the deposits that day total €5m we will already be in a strong position because we would have the trading benefits of adding that €7m to the market prior to the decrease, increasing the strength of our own reserves.

In relation to the tax status in the UK, that was a strong factor in choosing the UK.

Yes TAT are coordinating the release across multiple platforms.

TAT are coordinating the offering across multiple exchanges. So that cater better to your personal preferences.

The UK has set taxation guidelines on Bitcoin operations. The subsidiaries are being registered in every European jurisdiction.

The virtual entity is to ensure current American SEC regulations are not being broken by investors from America.

Bee provides a necessary way to allow people the ability to spend their money, something that is not easily done with capital controls. Merchants will also be a driving force towards the adoption of Neo accounts, due to the added benefits of faster settlement times and lower transaction fees.

We currently do not require a Banking License, we are lobbying the Attorney General, Minister of Finance and Minister of Commerce directly to establish a legal framework for Bitcoin based businesses to operate within. Being a small enough island it is easily possible to gain access to these individuals (Something we have already done). The added benefits of the creation of this framework for both Cyprus as a country and our business will be big. Cyprus will attract more international investment fom capital being raised by Bitcoin businesses looking for a suitable jurisdiction to establish themselves within and the PR benefits to ourselves will only be positive locally.

Initially we do rely upon the price growing, but we have conservatively estimated our projected deposits. This is the big step towards achieving what most of the Bitcoin world "thought" was going to happen during the time of the bank holiday in late March, early April this year. It was never going to happen because 1) The banks were closed 2) Very few people knew what Bitcoin was 3) People just don't spend as much time on the internet here.

We are addressing number 2 directly but making it user friendly, For number 1, the people have been taking their money out of the bank at the €300 per day rate and number 3 will not need to change, although we already have made progress with increasing eCommerce which will increase the internet usage of the general population. (More on this will be released shortly).

We are still determining the AML/KYC solution that we shall proceed with.

Our local index will determine the price the Bitcoins flowing between our customers when depositing and withdrawing, this will be determined on long averages, our purchase price, how efficiently we can liquidate our own positions to ensure sufficient cash flow to cover larger withdrawals, customer behavioral trends.

If the price drops considerably quickly it will take time to filter through the averages until it reaches the front line, this additional time will enable us to take advantage of trading conditions to strengthen our position.

I have spoken with Crypto Financial whilst we were developing the business, we have and will continue to explore many different avenues in relation to the growth and strengthening of our business.