Diamond Standard Co. has launched CARATS, a blockchain payment system using tokenized diamonds as collateral for transactions, aiming to navigate regulatory hurdles faced by centralised exchanges. Unlike cryptocurrencies, CARATS operates by shifting receipts for physical commodities, avoiding typical money transmission regulations. Meanwhile, Elon Musk's X platform confronts similar challenges, needing licences in every jurisdiction it operates. Despite efforts, the process remains arduous, exemplified by various exchanges retracting permit applications in markets like Hong Kong.