Walkers acts on Diamond Standard's DABA Licence

Walkers (Bermuda) Limited ("Walkers") is pleased to have represented Diamond Standard Ltd. (formerly BitCarbon Technologies Limited) with respect to its application (and subsequent approval from the Bermuda Monetary Authority) for a Class M licence under the Digital Asset Business Act 2018 (as amended) (the "DABA licence"). The DABA licence enables Diamond Standard Ltd. to issue, sell or redeem virtual coins, tokens, or any other form of digital asset in or from within Bermuda during the period of the licence and subject to its terms.

Diamond Standard is seeking to disrupt the global diamond market by setting up a pioneering digital-physical electronic exchange that is both transparent and subject to regulatory oversight for trading diamonds of up to two carats. The DABA licence represents the initial stage in this process and permits Diamond Standard Ltd. to sell diamond commodities, which are embedded with wireless encryption chips that enable global authentication and store a blockchain token. This technology creates an interface between the digital and the physical asset and the digital token can also be used to asset-back a digital contract. Sales of the diamond commodities commenced on 16 February 2021.

The DABA licence team at Walkers comprised corporate partner, Natalie Neto, senior associate Rachel Nightingale and associate, Julian Wheddon. Natalie Neto commented "We are delighted to have been able to assist Diamond Standard with the establishment of its business in Bermuda and regulatory application under Bermuda's pioneering digital assets legislation. Diamond Standard's commitment to meeting the robust standards set by the Bermuda Monetary Authority together with its dedicated team of innovative professionals and the exciting and unique nature of the product meant that it was an absolute pleasure to work with them throughout and we wish them every success on the launch and beyond".

Walkers was also able to provide assistance on all aspects the anti-money laundering and anti-terrorist financing procedures, which form an integral part of the DABA licence application process, through its affiliated company, Walkers Regulatory Compliance (Bermuda) Limited, and was advised throughout the process by senior vice president, Michael Wynne.

Cormac Kinney, Founder and CEO of Diamond Standard stated: "We believed that obtaining world-class regulatory oversight would be essential for the success of the world's first diamond commodity. This would not have been possible without the patience and guidance of the Walkers team".