BBFpro, a Novosibirsk, Russia-based bitcoin selling company, has installed ten cryptocurrency ATMs in the city, as reported earlier this month by the Russian media based on company statements.
To create the new terminals, the company has rewired traditional ATMs. These have been installed in beverage shops, where the rent is twice lower than in shopping malls.
It took three months to develop the software, with around two million rubles (almost $35,000 at the current exchange rate), mostly in loans, injected in the project.
The terminals take a commission fee of 6%, nearly three times as less as online exchange systems. Even though there are no competitors in the city, clients have been few so far and the business is not profitable yet, said Anton Fridel, the managing director.
“We expected to succeed quickly thanks to our advertising efforts. However, due to the unstable legal environment, most media resources have refused to promote us.”
Besides, the company is still uncertain about the mechanism of taxation.
“We’ll provide the tax services with all the required documentation. However, we’re not sure it will be accepted,” stated Fridel.
BBFpro is planning to expand to four other Russian cities, including Krasnoyarsk and Irkutsk, and to introduce other cryptocurrencies.
“We are currently developing a terminal which will be able not only to sell, but also to buy cryptocurrency. Nevertheless, we’ll not introduce it before the industry has been regulated,” said the entrepreneur.
Source: RBC
