The idea for painting with diamonds appears to have originated in Asia (Our Diamond Painting Factory is Located In China.). Still, the activity quickly spread to Europe and is quite a popular craft in Russia.
It’s still relatively new, and while I couldn’t find an exact date, I found 2015 mentioned a few times. In other parts of the world, Diamond Painting may be called diamond art, paint with diamonds, mosaic art, diamond stitch, or diamond embroidery.