As Russia persists with its attacks on Ukraine, Western nations are looking to clamp down on the trade of Russian diamonds by introducing better tracing of the origin of diamonds. Calls for more robust checks are growing from both official bodies such as the EU as well as industry actors and consumers. In response, a Belgian firm has come up with a new smart technology.
Several systems have already been devised to trace diamonds but a synchronised system to map the full path for each type was still lacking. Belgian software company iTraceiT has now developed the first software that maps the diamond's entire path, from mine to jeweller.
This information is then included in the integral diamond passport, which allows those buying and selling diamonds to scan a QR code to access the transaction history of the gemstone and whether they are ethically and sustainably sourced. It would work for stones of any size, value, country of origin, rough or polished.
"It is the first time such a comprehensive diamond passport has been developed," said Frederik Degryse, CEO of iTraceiT. "Our technology can provide an answer to the increasing demand from diamond dealers as well as consumers for more transparency."
"Initially there was some resistance to our system, but the trend is unstoppable," Degryse added.
An example of a traceability report. Credit: iTraceiT
Every transaction is recorded, with evidence provided in photos of the rough diamond and videos of the cutting process, as well as purchasing invoices, transport documents and other certificates. The system also uses blockchain to add a security stamp so no data can be deleted. "This increases the security and at the same time the credibility of our software."
This technology also allows existing systems for tracking the origin to communicate with each other.Degryse explained that this system will help close off the market for certain diamonds in case of an ethical conflict.
However, the company did note that creating such a comprehensive passport is only possible when all players at every level of the diamond life cycle provide the necessary information, which in many cases will require major changes in processing practices.
Belgian solution for Belgian problem
In recent weeks, the diamond sector in Belgium has been under sustained scrutiny. Last week, it was revealed that HRD Antwerp, one of the world's leading diamond certifiers, is under investigation for how it assesses gemstones.
There is talk of gifts from diamond firms and legal rules not being respected, as well as the origin of Russian diamonds being covered up. Additionally, check by the Federal Public Service Economy is not always as it should be.
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Umbrella federation Antwerp World Diamond Centre (AWDC) welcomes any initiative related to transparency, adding that this is "promising technology."
"But to really move to a fully traceable system, where independent partners can verify dates and stones, there are still big steps to take," AWDC's Tom Neys told Belga News Agency.
