These days, lawsuits are flying all over Web3, and everyone is taking someone else to court. In fact, the SEC and certain firms have been visiting courtrooms for more than three years now. A failed defense can lead to the death of a blockchain project. In this regard, these companies need very good cryptocurrency lawyers for situations like this.
Contrary to popular opinion, cryptocurrency lawyers do more than just represent blockchain firms in court. In fact, these professionals are as important as the tech guys in a Web3 company. This article will explain what crypto lawyers are and highlight why every establishment requires them.
What are Cryptocurrency Lawyers?
Cryptocurrency lawyers are legal professionals whose area of expertise focuses on the policy implications of blockchain technology. They advise governmental agencies, private companies, and public corporations that offer on the legal requirements and implications of this technology.
As stated above, their role is more “advisory” than executive. This means that a good cryptocurrency lawyer will guide companies on how they can avoid lawsuits in the first place. Taking this route is essential, considering that everyone in Web3 is literally walking on eggshells whenever they are creating blockchain-based solutions.
It only takes one loophole for the authority to drag you to court. However, getting a good lawyer means that you get to cover all possible loopholes. Even when the government tries to take you to court, they will not have anything substantial to hold against you.
What Are the Criteria to Become a Qualified Blockchain Litigation Consultant
There is no specific degree in “Blockchain Law” or “Cryptocurrency Law”. In fact, many countries do not have a particular legal framework for cryptocurrencies. Instead, they borrow regulations from finance and technology to guide blockchain companies.
Considering this factor, it is unsurprising that law schools do not have a syllabus for “crypto law.” However, this does not mean that there are no essential qualifications to become a blockchain litigation consultant.
Below are the requirements for cryptocurrency lawyers:
- A law degree from a recognized law school.
- In-depth knowledge of blockchain, smart contracts, cryptocurrencies, DeFi, NFTs, GameFi, and other components of Web3.
- Practical knowledge of drafting agreements, prospectus, and other documents in line with the regulations of the required country.
- Additional blockchain-related certification.
Speaking of additional blockchain qualifications, there are very few institutions that offer them. Below are some schools that offer degrees on blockchain:
- Queen Mary University of London
- New York University
- Stanford University
- Princeton University
While they may not be exactly blockchain law degrees, these certifications are perfect for lawyers who want to delve into Web3. They can gain an in-depth understanding of the decentralized ecosystem and combine these details with their legal knowledge.
Why Does Every Blockchain Firm Need Cryptocurrency Lawyers?
Earlier on, we stated that cryptocurrency lawyers are more like advisors than executives. The reason is that they focus more on preventing possible litigation than actually representing their clients in court. This does not in any way mean that cryptocurrency lawyers cannot represent blockchain firms in court. It only implies that they focus more on prevention than legal resolution.
We also mentioned earlier that most countries (including developed ones) do not have a dedicated framework for blockchain company operations. They often combine the laws guarding tech companies and the regulations for financial institutions as they deem fit. With laws like this, it is very easy for establishments to default without even knowing.
You may think that you have fulfilled all obligations. Unknown to you, the SEC is keenly watching for the company to make a mistake while the project is still growing. The next thing you know, you are receiving a lawsuit. There are some court cases that will drag out unnecessarily for a very long time. Cases like this can cause investors to lose trust and ultimately destroy the project.
Why Crypto Lawyers Will Become More Popular
Crypto lawyers will become even more popular in the coming years. More Web3 products are coming up daily, and they will need essential legal guidance. Unlike several years ago, more investors are now willing to contribute to blockchain startups.
Another reason is that the average person is beginning to realize the potential of blockchain and is willing to adopt the technology. However, even individuals are bound by regulations regarding investors, holding, and using cryptocurrencies. So, they too will need guidance on how to protect their assets and avoid multiple taxation when making a Bitcoin payment.