What Does it Entail to Become a Blockchain Lawyer?
The way individuals and corporations do business online is changing because of blockchain technology. But even though the technology opens up new areas, it also has a lot of unknowns. This is why federal agencies such as the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), and the Securities and Exchange Commission (SEC) have stepped in to regulate the blockchain space.
What Opportunities are Available in Blockchain Law?
Organizations that work with blockchain platforms, cryptocurrency traders, and cryptocurrency investors need to be careful and get legal help before doing anything that could lead to civil or criminal prosecution.
It is for the above reason that a new field in the legal space is slowly taking shape. Blockchain lawyers are legal practitioners who provide counsel to clients who deploy blockchain-based business solutions, create or use cryptocurrencies, or integrate distributed ledger-based technologies in their processes.
The crypto space is filled with opportunities for lawyers to promote best practices and ensure that trailblazing and disruptive blockchain projects operate within existing legal frameworks. The following are areas where attorneys can lend their expertise to the blockchain and crypto community:
Consulting
Lawyers working in blockchain will have many clients, from big companies to small startups and even individuals who want to make money from crypto. These potential clients are usually blank slates as far as the legal requirements of the crypto space are concerned, and it is the lawyer's job to help them make a legal road map for corporate governance and other issues. Here, the blockchain lawyer helps them decide where to incorporate, what kind of legal structure would work best for their business, and whether to make an initial coin offering (ICO) or not.
Policy Formulation
The necessity for policy formulation is greatest with regard to newly developing technology such as blockchain. It is common knowledge that governments are typically the slowest to adopt new technologies. However, it is still possible to provide this service to organizations primarily focused on developing legal structures.
Legislative Tracking
Given the ever-evolving nature of blockchain, there is usually some new legislation or policy connected to its regulation being issued somewhere in the world at any given time. The widespread legal ambiguity that currently hangs over blockchain technology means maintaining an up-to-date review of these legislations is critical.
Compliance
Some countries might require organizations to get licenses before engaging in blockchain or crypto activities. The legal status of a token might also determine whether or not a project needs a license. For instance, in some jurisdictions, if a token is deemed a utility, it would not require a license to operate. However, the issuing organization would need a license if the token is considered a security.
Blockchain lawyers would come in handy in ensuring crypto projects avoid statutory and regulatory violations through compliance with the legal requirements of different jurisdictions.
Litigation
It is estimated that there has been a four-fold increase in legal suits involving blockchain technology and its applications in the last four years. Blockchain lawyers can represent companies and individuals in investigations and inquiries involving regulatory bodies. They can also provide defense representation for civil or criminal cases that may arise from allegations of fraud, money laundering, tax evasion, and assorted cyber crimes.
What Do You Need to Become a Blockchain Lawyer?
The path to becoming a blockchain lawyer is not the easiest. It would be best if you are both legally and technologically savvy.
Conclusion
Like any other practice, blockchain law requires you to understand what is happening in that space in order to advise clients appropriately. Take courses and read books that will enhance your knowledge about the legal, business, and technical aspects of blockchain.
Your resilience toward law and technology will help you become a blockchain lawyer.