Diamond Standard is regulated, licensed, and supervised by the Bermuda Monetary Authority (BMA). As a digital asset business, Diamond Standard is subject to a rigorous level of regulatory oversight, ensuring all our clients have the highest form of security and protection.
You may be wondering why we chose Bermuda and what exactly is BMA’s role with our company. At Diamond Standard, we believe the only way to establish and maintain safety and transparency for clients is through rigorous oversight from one of the most mature regulators in the world.
Being BMA regulated increases the assurance for our investors, requires us to be audited, and increases overall transparency in the process. The BMA is a top tier regulator, and Bermuda passed new legislation in 2019 allowing it to regulate digital assets. The BMA reviews and licenses Diamond Standard’s token issuance offerings, and enforces auditing (by Deloitte), KYC/AML, information security, insurance, as well as compliance.
Bermuda is one of the only governments to establish clear laws for digital asset offerings, and it took up two years to get their approval. It is clearly on track to become a recognized leader in building a functioning regulatory framework for the benefit of the global blockchain industry.
Bermuda Emerging As Global Hub for Digital Asset Businesses
As one of the offshore financial centers of the world, Bermuda adopted a business-friendly approach to the governance of digital assets and related businesses. Bermuda has been listed among the top most crypto-friendly countries in the world and has demonstrated its willingness and desire to work with the blockchain industry. The government’s efforts to clarify and regulate the digital asset space to prevent criminality and provide stability for fintech businesses has drawn global attention to the island.
Supervision & Regulation: The Digital Assets Business Act 2018 (DABA)
Bermuda’s Digital Asset Business Act, 2018 (“DABA”) adds a new layer to the Island’s fintech boom. And, we are proud to be a part of this transformation. The legislation covers the licensing of entities which will carry on digital asset business in or from Bermuda. The Act introduced the concept of digital asset businesses setting up and being regulated in Bermuda. Bermuda is the latest jurisdiction to update its regulation in response to the rising prominence of blockchain technology innovation and Initial Coin Offerings. To learn more about what digital asset businesses like ours can do, as set out in the Act, please visit: Digital Assets Supervision and Regulation in Bermuda - BMA
BMA's Prudential Framework & Risk-based Approach
BMA is committed to providing open, transparent regulatory frameworks and requirements, which are consistent with international best practice.
Before engaging in the activities of a digital asset business, Diamond Standard applied to the BMA and obtained a class M license, therefore allowing us to operate with certain conditions in place. Using a risk-based framework allows the BMA to detect problems at an early stage and take regulatory action on a timely basis.
Our C-level executives are all reviewed and approved by the BMA. This enhanced vetting process ensures that individuals that manage the firm are “fit and proper” under the regulations to hold these positions. For example, our Chief Compliance Officer (CCO) oversees a variety of compliance categories -- from privacy and regulation to financial crime, anti-money laundering, anti-terror finance, as well as sanctions.
To learn more please visit: Standards and Regulations of the Bermuda Monetary Authority - BMA
AML/ATF Framework in Bermuda
As a BMA licensee, we are required to meet the requirements set forth in several Bermuda laws. To highlight such criteria, some of the laws include the Proceeds of Crime Act (POCA), International Sanctions Regulations 2013, and Digital Asset Business Act 2018. They all ensure that companies like ours protect investors, Bermuda, and the financial system from market manipulation.
To learn more please visit: AML/ATF Supervision and Regulation in Bermuda - BMA
Fintech businesses like ours, or even Bittrex and Circle, (all under the supervision of the BMA) will find a highly developed ecosystem in Bermuda. The island continues to be a leading home to the insurance and reinsurance sectors and is experiencing an increase in fin-tech licensed entities and investment business applications.
Thanks to BMA’s supervision and regulation, we benefit from a significant wealth of intellectual capital. We are also proud to be a part of a progressive government and regulator seeking to establish Bermuda as a leading jurisdiction for the financial technology community.
Diamond Standard Ltd. is a Digital Assets Business licensed by the Bermuda Monetary Authority to issue, sell and redeem tokens and digital assets.
Our license number is: 53943.
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