Belfrics Group Continues Corporate Operations in Spite of Crypto Market Turmoil

Rhea-AI Summary

Life Clips, Inc. (OTC Pink: LCLP) announced that its subsidiary, Belfrics Group, will maintain operations amidst industry layoffs. Founded in 2014, Belfrics operates cryptocurrency exchanges in 8 countries using its own blockchain platform with advanced KYC capabilities. Despite a revenue decline expected in Q4 due to market conditions, Belfrics boasts $5.24 million in revenues for the first nine months of fiscal 2022. The firm emphasizes compliance with regulations, setting it apart in the crypto sector, which faces increased threat of hacks, having lost over $2 billion in the first half of 2022.

Positive

• Belfrics operates cryptocurrency exchanges in 8 countries, enhancing market reach.
• Reported $5.24 million in revenue for the first nine months of fiscal 2022.
• Proprietary blockchain and KYC capabilities position Belfrics as a leader in compliance.
• Belfrics aims for long-term growth despite industry challenges.

Negative

• Expected revenue decline in Q4 due to tough market conditions and limited capital access.
• Increased operating costs of $3.87 million impact profitability.

• Belfrics Group is a global blockchain technology firm, licensed and regulated by the Labuan Financial Services Authority (LFSA) in Malaysia, operating cryptocurrency exchanges on its proprietary blockchain platform
• Belfrics Group took the longer-term, more difficult route of establishing regional exchanges in all of its target regions, instead of operating from a single offshore jurisdiction

AVENTURA, Fla., July 29, 2022 (GLOBE NEWSWIRE) -- Life Clips, Inc. (OTC Pink: LCLP) (the “Company”) today reported its Belfrics Group subsidiary will continue its corporate operations as other cryptocurrency exchanges lay off employees and reduce plans for growth. Founded in 2014, Belfrics developed its digital exchange platform based on its proprietary blockchain with extensive KYC capabilities. By taking the longer-term approach of establishing regional exchanges in all of its target regions, Belfrics Group is now successfully operating in 8 countries with 8 different verticals.

Belfrics Group Operations
Belfrics Group (the “Company”, or “Belfrics”) is a global blockchain technology firm operating cryptocurrency exchanges on its proprietary trading platform. The company is licensed and regulated by the Labuan Financial Services Authority (LFSA) in Malaysia with presence in Malaysia, Singapore, India, Kenya, Tanzania, and Nigeria. In addition to our Belfrics Exchange, Belfrics Group provides blockchain related technologies and solutions to an expanding base of customers. Belfrics is equipped with its own Blockchain-based KYC solution, which makes us one of the few global exchanges equipped to track and monitor digital currency transactions and effectively deliver inter-operable digital currency data transfer between exchanges and financial institutions. With an in-house developed trading platform and with regulatory compliance experience in Asia, Asia Pacific, Africa and the Middle East, Belfrics is poised to comply with upcoming regulations when such frameworks are inevitably imposed on the industry. As most cryptocurrency exchanges resist regulation, our efforts to work with local authorities puts Belfrics Group a step ahead of the competition.

Belfrics Group Security
According to a Web3 Quarterly Security Report for Q2 2022 by US cybersecurity firm, CertiK, the second quarter of 2022 saw over $870 million lost to web3 hacks and breaches. The total amount of money lost to hacks and breaches of web3 platforms has crossed $2 billion in the first half of 2022 — thus exceeding the total volume of breaches seen globally in 2021. Belfrics’ end-to-end Belrium identification process is a strong measure to prevent financial client and market abuses. Belrium serves as a decentralized infrastructure for KYC verifications, which will provide the key assistance in the verification and identification process or the originator and beneficiary of the transactions involved in further eliminating the risk of identifying the destination and the source of the funds that was received or sent by the client.

In January 2022, Belfrics obtained an exclusive license for the XOTIC (XOR Transient Intelligent Cipher) cryptographic system from Software Research Labs LLC to enhance the security of our blockchain. Belfrics utilizes Coincover’s Consumer Protect technology to help safeguard its client’s crypto assets. We believe these measures, along with our own internal control procedures, offer Belfrics' customers the highest security protocols and make us one of the safest cryptocurrency exchanges in the markets we serve.

Results of Operations and Expectations
As Belfrics Group continues to execute on its plan for long-term growth, investors should expect a decline in fourth quarter revenues as a result of industry conditions and lack of access to capital for expansion. In spite of the global cryptocurrency industry slowdown, Belfrics Group expects to announce the achievement of several milestones this quarter. As of now 25 currencies are available for trading on Belfrics exchanges, which includes BTC, ETH, BEL, ADA, SOL, LTC, USDT, XRP, BCH, DASH, FTM, TRX, XLM, MATIC, SHIB, UNI, OMG, ZRX, LINK, USDC, PAXG, WBTC, DODGE, DAI, and DYDX.

For the first nine months of fiscal 2022 ending March 31, 2022, Belfrics’ total revenues were $5.24 million with a gross profit of $2.28 million. Life Clips’ total operating costs of $3.87 million for the nine months ended March 31, 2022 included higher professional fees, marketing expenses, and payroll expenses. Our upcoming fourth quarter results will reflect these increased expenses. This reiterates the commitment for growth Belfrics made to its customers, employees, and shareholders. Belfrics has continued to grow and maintain its employee base, while many of our larger competitors, who have raised significantly more capital, announced layoffs during the downturn in cryptocurrency.

Belfrics CEO and Founder, Praveen Kumar said, “I have previously stated our primary focus would be to do things right the first time as we build out our infrastructure for the future. We have continued to follow this path, even though it has been more difficult, and we will continue to improve our systems and our network in order to provide the best possible service for our Belfrics users." Mr. Kumar continued, "We are one of the few global exchanges focused on regulations and doing informed business with the regulatory authorities wherever we operate. With our decentralized KYC capability, I can arguably say that we are probably the only exchange at present that can comply with interoperability of compliance information between the exchanges, which will be a primary requirement of the regulators when regulations are tightened up.”

Life Clips CEO, Robert Grinberg, commented, “Cryptocurrency enthusiasts have remained resilient, and we are starting to see the effect of returning buying volume on the market as Bitcoin has finally broken through the consolidation channel that has been forming since June 19. As one who has been around financial markets for decades, I believe downturns like we have seen in the cryptocurrency market are necessary for any financial market to mature and evolve. As we return to an appreciating market, it will be more sustained and healthier, with less speculation. As other cryptocurrency exchanges have slowed down their plans for growth, Belfrics has continued to lay the foundation for future prosperity. We expect to update our shareholders on these developments in the coming weeks.”

As the cryptocurrency industry enters its next phase, Life Clips will provide more regular shareholder updates on both Belfrics and Cognitive Apps

About Us

Life Clips is the parent company of Belfrics Global and Cognitive Apps Software Solutions Inc. Belfrics Global is a Malaysian based blockchain provider and cryptocurrency exchange and platform that is licensed and regulated by Labuan Financial Services Authority (LFSA), Malaysia. With 10 operational offices in 8 countries, Belfrics’ multi-feature trading platform offers digital assets, cryptocurrencies, and crypto derivative contracts to its clients. Belfrics blockchain has been recognized by Gartner as being a top 10 blockchain in terms of real-world projects and has received a patent for its Belrium KYC verification System (BKVS) by the Nigerian patent authority. Cognitive Apps is disrupting the space of mental health with its speech-based, AI-powered mental health analytics platform that empowers businesses to measure, understand, and improve the mental well-being of their employees, patients, and customers. Aiki delivers CBT and IPT therapies using a chatbot which and includes the voice analysis solution that takes in other health data from Apple and Google HealthKit to make a more accurate analysis of one’s mental health. Aiki was developed to capitalize on the trend towards artificial intelligence platforms utilized by individuals and companies to raise awareness of employees’ mental health. Cognitive Apps is developed by a team of licensed psychotherapists that makes use of vocal biomarkers to screen for early signs of mental health conditions, such as stress and depression. Aiki is available on Apple‘s App Store.

For more information on Life Clips visit www.lifeclips.com
For more information on Belfrics Global visit www.belfricsgroup.com
For more information on Cognitive Apps Software Solutions visit https://cogapps.com

Forward-Looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements: (i) the initiation, timing, progress and results of the Company’s research, manufacturing and other development efforts; (ii) the Company’s ability to advance its products to successfully complete development and commercialization; (iii) the manufacturing, development, commercialization, and market acceptance of the Company’s products; (iv) the lack of sufficient funding to finance the product development and business operations; (v) competitive companies and technologies within the Company’s industry and introduction of competing products; (vi) the Company’s ability to establish and maintain corporate collaborations; (vii) loss of key management personnel; (viii) the scope of protection the Company is able to establish and maintain for intellectual property rights covering its products and its ability to operate its business without infringing the intellectual property rights of others; (ix) potential failure to comply with applicable health information privacy and security laws and other state and federal privacy and security laws; and (x) the difficulty of predicting actions of the government and its regulations. All forward-looking statements included in this press release are made only as of the date of this press release. The Company assumes no obligation to update any written or oral forward-looking statement unless required by law.

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FAQ

What is the current status of Life Clips, Inc. (LCLP) and its subsidiary Belfrics Group?

Life Clips, Inc. (LCLP) reports that its subsidiary, Belfrics Group, continues operations while other cryptocurrency exchanges face layoffs.

What revenues did Belfrics Group report for fiscal 2022?

Belfrics Group reported revenues of $5.24 million for the first nine months of fiscal 2022.

How does Belfrics Group ensure security for its clients?

Belfrics Group utilizes its Belrium identification process and Coincover’s Consumer Protect technology to enhance client and market security.

What challenges is Belfrics Group facing in Q4 2022?

Belfrics Group anticipates a revenue decline in Q4 2022 due to industry conditions and limited access to capital for expansion.

How many countries does Belfrics Group operate in?

Belfrics Group operates cryptocurrency exchanges in 8 countries.