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Digital Asset Management Ltd - Madrid Presentation - Club Financiero

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Digital Asset Management Ltd's presentation at the Club Financiero, Genova, Madrid, for Jose Luis Romanillos seminar. DAM presented on the risks and opportunities of blockchain, DLT and cryptocurrencies to an audience of professionals and intermediaries.

www.dam.gi

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Digital Asset Management Ltd - Madrid Presentation - Club Financiero

  1. 1. Philip Vasquez Co-Founder & Head of Compliance philip@dam.gi Club Financiero Genova, Madrid 30 October 2018 Sam Buxton CEO & co-founder sam@dam.gi Thomas Johnson COO & co-founder thomas@dam.gi
  2. 2. � Copyright Digital Asset Management 2018� Digital Assets & Blockchain Opportunities & Risks 01
  3. 3. � Copyright Digital Asset Management 2018� Overview 02 1. Why are you here? 2. Industry ecosystem? 3. What are the opportunities? 4. What are the risks? 5. The DAM story.
  4. 4. � Copyright Digital Asset Management 2018� 1. The Story to Date 03 Bitcoin whitepaper 2008 (happy birthday); Development of Blockchain & other DLTs which followed; Gibraltar working-group 2014-15; Total valuation of all digital assets peaked at over $800bn (2017); Gibraltar DLT Regulations 2018; ICOs & ITOs; Emerging 'tokenisation' of financial instruments - STOs & financial instruments on the blockchain.
  5. 5. � Copyright Digital Asset Management 2018� 04
  6. 6. 05
  7. 7. � Copyright Digital Asset Management 2018� 2. Which one are you? 06 1. Creators of digital currencies & DLTs; 2. Intermediaries of digital currencies; 3. Investment Funds & non-MIFID entities Exchanges - facilitate exchange of virtual assets to other virtual assets or fiat (i.e. cash / state issued currencies like GBP / EUR / USD); Custodians of digital assets - store digital assets on behalf of others; Payment Services - allow you to spend your digital assets and send it to third parties on your behalf
  8. 8. � Copyright Digital Asset Management 2018� 07 4. Service Providers; 5. Consultants; 6. Users a. Lawyers; b. Accountants; c. Corporate Services (Company Incorporation / Secretary); d. Fund administrators; e. Trust Companies; f. Family offices / concierge / agents. a. Directors; b. Contractors; c. Software developers. a. Consumers; b. Retail participators/investors.
  9. 9. � Copyright Digital Asset Management 2018� 3. What are the Opportunities of Digital Assets? 08 1 Decentralised currencies 2 New Financing Models - ICO Boom 3 Programmable assets Efficiently and effectively transferring value. Auditable transactions. Boom in Initial Token Offerings or 'criptodivisas' - power to individuals to fund projects. Potential to program functions into assets ownership and distribution. Potential for low cost. 4 Highly volatile assets. Highly volatile assets which can be lucrative for traders and/or particular investment strategies.
  10. 10. � Copyright Digital Asset Management 2018� 4. What are the Risks? 09 1 Conversion - fiat into crypto and vice versa. 2 Counterparty Risk - regulated, trustworthy & knowledgeable. 3 Security - Safe custody of digital assets. Efficiently and effectively exchanging between traditional currencies and digital currencies. Only 26% of cryptocurrency exchanges are regulated. Other intermediaries are largely unregulated. Cold-storage vs Hot storage? Regulated institutions? 4 Compliance & Regulatory risk. AMLD 5; FATF Recommendations; MIFID II; Payment Services; Prospectus; AIFMD; Funds
  11. 11. � Copyright Digital Asset Management 2018� Counterparty Risks 10 40% of exchanges confirmed as having AML policies; Only 26% of exchanges are regulated; 46% exchanges do not have transparent and complete due diligence processes; 43% of exchanges do not comply with sanctions list checking; 57% of exchanges do not appear to have procedures to identify PEPs.
  12. 12. Secure Vault Storage portfolio management� FIAT/CRYPTO/FIAT Cold Storage: For institutional and private clients we offer exclusive secure offline and air-gapped wallets. Incorporating authentication and access protocols, enhanced cyber security, stored in secure facilities with 24 hour surveillance and more. Private Keys: Are stored offline and physically protected using a triad of deception, decentralisation and encryption to secure them. Investment Theprocessofbuying,managingandstoringDigitalAssetsisa tediousandpainfulexperience. DAM'suniquevaluepropositionistoassistinbuying,managingand storingcryptocurrenciesandtokensinwayswhichalignwith regulatoryprinciples. Custodianship 5. Our Services Execution Only (Over The Counter): Executing Digital Asset trades on behalf of our clients, when instructed by our clients. Including crypto to fiat transactions and vice versa. Advisory: we advise our clients on investment strategies, but our clients will make all final decisions. Discretionary: popular option for those who are not heavily experienced in Digital Assets, lack the time or inclination to be involved in the day to day management and overseeing of Digital Assets. OTC� Minimum deal size of 50k for institutions. No Maximum deal size. BUY & SELL. GBP/EURO: We have a GBP and EURO client account and can settle globally via swift.
  13. 13. Import to note that DAM has been fully operational since December and has already onboarded and tested each of these services.
  14. 14. Suite 1 First Floor Chatham Counterguard Works T:� � �+350 200 73337 W:� � www.dam.gi E:� � �info@dam.gi Digital Asset Management Limited is a Gibraltar Company with registered number 116618 seeking� regulatory� authorisation�as a Distributed Ledger Technology Provider with the Gibraltar Financial Services Commission �in accordance with the Financial Services (Investment and Fiduciary Services) Act 1989. Investments in Digital Assets are high risk and�we would suggest that Clients review our Risk Notice available on our website www.dam.gi from time to time. � Copyright Digital Asset Management 2018� Asset Support - deep dive We support over 30 different Blockchain and all their native tokens, for example ETH and all ERC20 tokens We continue to add further support as soon as we can, including Blockchains like Cardano and EOS
  15. 15. � Copyright Digital Asset Management 2018� Resources Confidential Proceeds of Crimes Act 2015 Gibraltar; Financial Services (Distributed Ledger Technology Providers) Regulations 2017 Gibraltar; https://www.fsc.gi/dlt; https://www.fsc.gi/uploads/Guidance%20Note%208%20-%20Financial%20Crime%20GFSC.pdf; Directive (EU) 2018/843 -https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32018L0843 Survey of Terrorist Groups and their Means of Financing - https://financialservices.house.gov/uploadedfiles/hhrg-115-ba01-wstate-yfanusie-20180907.pdf Virtual Currencies and terrorist financing: assessing the risks and evaluating responses - European Parliament May 2018 - http://www.europarl.europa.eu/RegData/etudes/STUD/2018/604970/IPOL_STU(2018)604970_EN.pdf FATF Report - Virtual Currencies Key Definitions and Potential AML/CFT Risks June 2014 - http://www.fatf-gafi.org/media/fatf/documents/reports/Virtual- currency-key-definitions-and-potential-aml-cft-risks.pdf ; Guidance for a risk based approach - virtual currencies 2015 - http://www.fatf-gafi.org/media/fatf/documents/reports/Guidance-RBA-Virtual-Currencies.pdf ; Where are we going? - Legal and regulatory overview of DLT & the Tokenised Economy - https://www.slideshare.net/Flipsta1/where-are-we-going-dlt- blockchain-legal Funds and the Emerging Digital Asset Class - https://www.dam.gi/gibraltarfunds/ The Digital Estate (Wills and Probate) 2018 - Sweet & Maxwell by Leigh Sagar; www.coinfirm.io; www.chainalysis.com; www.elliptic.co; https://hackernoon.com/the-ico-market-is-not-collapsing-its-maturing-c11bfd4cdfe8 https://elementus.io/token-sales-history http://www.fatf-gafi.org/publications/fatfrecommendations/documents/regulation-virtual-assets.html
  16. 16. Suite 1 First Floor Chatham Counterguard Works T:� � �+350 200 73337 W:� � www.dam.gi E:� � �info@dam.gi Digital Asset Management Limited is a Gibraltar Company with registered number 116618 seeking� regulatory� authorisation�as a Distributed Ledger Technology Provider with the Gibraltar Financial Services Commission �in accordance with the Financial Services (Investment and Fiduciary Services) Act 1989. Investments in Digital Assets are high risk and�we would suggest that Clients review our Risk Notice available on our website www.dam.gi from time to time. � Copyright Digital Asset Management 2018�

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