Cyprus Mail
Business Cyprus

Bitcoin marketers hit back at Central Bank warning

Bitcoin marketers say they are following strict guidelines

BITCOIN marketers Neo & Bee, who intend to set up shop in Cyprus, said yesterday they are taking all steps necessary to ensure that the transparency of their services go above and beyond current norms in the traditional financial system.

The company was responding to a second warning issued by the Central Bank against the use of the crypto-currency. The banking regulator said last week that bitcoin is not legal tender, and cautioned that the absence of regulation meant there is no recourse for persons losing money.

In a statement, Neo & Bee acknowledged that the Central Bank’s warning of the risks in investing in an unregulated currency was “reasonable”.

But it also took a swipe at the Central Bank and the Securities and Exchange Commission, saying the latter are “reluctant” to engage in a dialogue to regulate the business surrounding this new technology.

“Innovation is always upsetting, not innovating and being left behind as the world evolves has historically proven to be far more dangerous though; if not for vested interests, then for the future generations,” the statement read.

“Neo is already subjecting us to internal policies for anti-money laundering and know-your-customer that are stricter than any European legislation which surrounds these matters,” said Danny Brewster, the CEO of Neo & Bee.

“We have taken these steps to ensure that we build a transparent institution. Due to the nature of the technology we utilise throughout our business, this higher level of transparency is more achievable than anything that has come before us. If people want to use bitcoins they will find their own way to obtain them in an unregulated manner, even if Neo didn’t exist. So isn’t it better for them to acquire them via a regulated market that offers some level of protection?”

Brewster also referred to an item appearing in the Wall Street Journal on Friday, which seemed to mock the Central Bank for “not liking”, as it put it, bitcoin.

Bitcoin plunges after major platform indefinitely halts withdrawals

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