Regulatory Oversight

Diamond Standard Ltd. (“DSL”) is the producer of Diamond Standard Coins and Bars, and the issuer of BCC and BCB tokens upon such commodity’s receipt and electronic audit by an approved custodian. Approved custodians currently include Brinks, Loomis or Malca-Amit. DSL is regulated by the Bermuda Monetary Authority, which has granted it a Digital Asset Business License, permitting the “Issuing, selling, or redeeming of virtual coins, tokens, or any other form of digital asset” (See License No. 53,943 at https://bma.bm).

DSL has been internally audited by Deloitte since 2019.

See Deloitte Audit Reports: 2021 2022 2023

Diamond Standard Carats are an electronic document of title, or transferrable vault receipt converted by the Carats Smart Contract upon the deposit of a BCC or BCB token by the owner of the token (which is the owner of the commodity). Carats holders can redeem a BCC or BCB token for a specific physical commodity by returning Carats to the Carats Smart Contract, without permission, subject to prior KYC and AML approval. Holders of a BCC or BCB token can take physical possession of their underlying commodity at any time by returning its token to DS Admin Trust which administers the global vault custody.

Unlike the BCC and BCB tokens, Diamond Standard Carats are not supervised or licensed by the Bermuda Monetary Authority. Carats are issued by the Carats Smart Contract and the wireless blockchain chips integrated into the Diamond Standard commodities. The Carats Smart Contract is operated by the Carats Foundation, which engages DS Admin Trust to administer the custody of the Diamond Standard commodities in the Carats reserve.

DS Admin Trust is a Delaware statutory trust, for the benefit of Carat token holders as bailors. DSAM LLC is the sponsor of DS Admin Trust. DSAM LLC and DSL are wholly owned subsidiaries of Diamond Standard Inc. The Diamond Standard group is FINCEN registered and enforces Bermuda and U.S. standards of KYC & anti-money laundering.