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

© Copyright Digital Asset Management 2018
Digital Assets & Blockchain
Opportunities & Risks
01

© 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.

© 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.

© Copyright Digital Asset Management 2018
04

05

© 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

© 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.

© 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.

© 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

© 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.

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.

Import to note that DAM has been fully operational since December and has already onboarded and tested each of these services.

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

© 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

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