- Uncertain and unpredictable regulatory environment for blockchain and digital assets
- Fast-changing business environment
- The complexity of operating across multiple geographies
- Concepts and technology not always well-understood by customers, thereby creating hesitancy to adopt solutions powered by blockchain technology
- Reliance on relationships with traditional banks and payment service providers
- Response from established players (e.g., payment services providers, Facebook, and banks), who are also important service providers to the business
- Expressed interest from potential customers and consortium members
- First mover advantage – very few direct competitors with comparable pricing,
- speed, and overall value proposition
- The increasing tendency towards technology-driven solutions, particularly from the large millennial consumer base
- Opportunities to participate in trade shows and establish the company as a thought leader in the industry
- Lack of reputation – not yet established as a reputable service provider
- As a growing start-up, there is a need to establish robust organizational, processes, risk management, and compliance structures
- Lack of strategic relationships with banking partners in all key geographies
- Lack of expansion capital
- Highly skilled, knowledgeable and experienced executive team with deep roots and connections in the diamond industry
- The highly skilled technical team that has already developed, tested, and validated the core technology
- Advisors with expert knowledge in the banking, finance, blockchain and legal industries
- Product and service offering with strong value proposition (cost, speed, and security) proven by expressed interest from potential customers, investors and consortium members
- Established networks in key strategic geographies (e.g., USA, India, Belgium, South Africa, Hong Kong)
- A risk-based approach to compliance instills customer and investor confidence and affords it a competitive advantage over industry rivals
- Lean cost structure
The Diamante team of executives and advisors is made up of experts with significant regulatory, technical, strategic and operational experience in both the diamond and blockchain industries.
Complying with regulations such as KYC, and Kimberly Certified Norms ensures that the trade participants are trustworthy, and the diamonds they trade in are ethically sourced. Diamante also keeps to AML, FINCEN, and FINRA regulations to prevent money laundering and maintain fairness in trade practices.
Diamante follows the USA Patriot Act is to identify, disrupt, and prevent terrorist acts and money laundering activities by encouraging further cooperation among law enforcement, regulators, and financial institutions to share information. The Diamante consortium will be fully compliant with the Act.
Diamante has received a no-action letter from FINMA, swiss financial market supervisory authority stating DIAM (Native Digital Asset on Diamante Net) as a utility token exempted from security.
To ensure that Diamante is fully compliant with these and other relevant regulations, the company will develop and operationalize the compliance program according to the following phases:
- Phase 1: Regulatory Mapping : Identify relevant regulations, licenses, and compliance obligations concerning current and proposed business offerings to provide the necessary background to select a near term and longer-term approach to licensing and developing the compliance program.
- Phase 2: Program Documentation:Draft and/or enhance AML and sanctions policies and procedures to fulfill regulatory obligations and align with industry best practices. Program documentation will include AML policy, AML procedures, sanctions policy, and sanctions procedures.
- Phase 3: Risk Assessment:Assess the overall risk inherent to the business based upon its products, customers, and geographic footprint. Evaluate and account for controls in place that are designed to mitigate the inherent risk and calculate and evaluate the residual risk that remains after the controls are applied .
- Phase 4: Target Operating Model : Document the current state of the program and highlight areas of continued need in terms of staff and technology. Select staff, advisors, and technology vendors needed to establish and enhance the compliance program.
As the Diamond industry is very closed-looped and majorly operated by family, it makes it easier to penetrate and achieve high growth. The management team’s experience, relationships and connections helped Diamante Blockchain achieve traction quickly: for example, approximately 400 companies signed up for the Diamante Consortium immediately upon launch – these Consortium members represent approximately 8-10 Billion USD in total annual revenue.
Yes, Diamante owns 100% of this valuable intellectual property asset. Diamante has developed a proprietary DLT network called Diamante Net, which hosts PayCircle, among other things.