How Can Blockchain Track Conflict Minerals and Help with Compliance?
In recent years, more companies have begun marketing ethically sourced or “conflict-free” diamonds, gold and other minerals in response to growing consumer appetite for information on responsible sourcing. They are also increasingly subject to regulatory obligations aimed at improving due diligence and transparency with respect to the minerals in their supply chains. But how can the source of these minerals be verified while also helping the companies comply with regulations?
Associate Naffie Lamin (New York-Derivatives & Structured Products), counsel Jonathan Handyside (London-Capital Markets) and partner Cynthia Urda Kassis (New York-Project Development & Finance) wrote an article for Mining.com which examines how blockchain could help verify the sourcing of these minerals and could assist companies that use these materials in their supply chains to comply with their regulatory reporting obligations pursuant to the U.S. Securities and Exchange Commission (SEC) “Conflict Minerals Rule” and its EU equivalent.