Malaysia-based Belfrics, a cryptocurrency exchange platform, recently launched its operations in India. We speak to Praveenkumar Vijayakumar, Chairman & CEO, Belfrics Global on the evolution of cryptocurrency as the future of digital currency.
Over the past few years, the digital currencies’ marketcap has skyrocketed to $100 billion mark, majorly backed by tech enthusiasts and high risk speculators across the globe. Ever since, Bitcoin came into existence, the think tank from the financial markets, which includes the banking institutions, have tried to write off the technology and the digital currency as an over-hyped technology. However, the year 2016 saw the digital currencies establish as a formidable asset class, that are too good to be ignored. Now that the asset classes have seen $100 billion mark and are set to reach $1 trillion market in a much faster pace than any other asset class till date, many have retracted from their initial statements and assessments, according to Vijayakumar. “The digital currencies will test the limits of the collaborative global governance and technology’s dominance on financial markets, irrespective of which digital currency that will achieve the dominance, the collective digital currency asset class is set to be the most sought after asset class in the years to come. We have not done much activity in India since our launch and are waiting for a clarity on regulatory clearance to go full-fledged on merchant acquisition and exchange operation expansions,” says Kumar.
Q: Tell us about the business plan of Belfrics?
A: Belfrics digital currency exchange has gone live in Singapore, India and Kenya and will be expanding in six regions in the next couple of quarters. Our prime focus is on Asia, Asia Pacific and Africa region. We will be providing POS and payment gateway solution for merchants and white label solutions for exchanges. BelfricsBT, our blockchain development firm, is focussed on providing blockchain consultancy and enterprise application development solutions. Currently, we are working on multiple projects for both the government and private enterprises. Belfrics is soon going to launch an Initial Coin Offering (ICO) in September and is launching a 1st KYC compliant blockchain.
Q: What are the current numbers of investors trading Bitcoins through Belfrics?
A: We are one of the fastest growing blockchain technology companies of the world and have rapidly amassed 25000 active traders.
Q: What are your expectations in the coming months?
A: Our aggressive global expansion plans will help us triple our user base in the next two quarters.
Q: What is Bitcoin’s valuation and the return on investment for the investors?
A: Bitcoin and other cryptocurrencies will continue its sharp volatility for quite some time as the liquidity is considerably less in comparison with the mature markets of equity, FX and commodities. If investors are looking for a high risk/high return investment for 3 to 5 years horizon, then Bitcoin will be a good one to bet on.
Q: What are the regulatory issues of accepting Bitcoins across the globe?
A: Digital currency operations will gain its acceptance slow and steadily across the globe. Identity management and capital control will be two major hurdles, which the regulators will be exploring rigorously before regulating digital currency operations. With the advent of technology, I am quite sure that these hurdles can overcome and the blockchain technology will prove to be the best ever technology a regulator can have.