If you run a blockchain-related business, one of the hardest decisions you’ll have to make is to get the right crypto lawyer. The legal implications for such a business can be severe and you want to make sure that all legal loopholes are being addressed to prevent lawsuits.
Getting an attorney is never a straightforward process. You will have to do the due diligence so that you’re sure of working with the right attorney. There are a couple of reasons why your blockchain project needs legal counsel and we’re going to highlight some of them.
Corporate Governance
When it comes to corporate law, there is no such thing as a blockchain project. It is crucial that you’re creating a corporate entity so that you’re not personally liable in case things go wrong. It doesn’t matter if you’re a for-profit or non-profit organization, you will need to follow the corporate formalities as required by law.
Regulated Entities
You should expect higher regulations if you’re a non-profit entity. You might have consulted with a legal expert and even filed the paperwork the way it is supposed to be done. To begin with, a non-profit organization should only be pursuing charitable purposes. There is no denying that a blockchain project can help in achieving this objective. You need to be careful with these operations as the IRS is more watchful of such organizations given their nature.
Open Source
There is a common notion that you don’t need a copyright lawyer when the project is open source. There are a lot of technicalities involved for open source issues which could have dire consequences on the success of your project. Every single detail will matter when it comes to open-source projects. You want to make sure that is compatible with other licenses and there are no overlaps with the legal frameworks of operation.
Trademark
Your project has launched but did you consult with a trademark lawyer to ensure that everything is in order? Make sure that your mark is being registered with the appropriate bodies. It is appalling that a high number of cap cryptocurrencies have never bothered to register for a trademark. If you’re not sure of how to go about the process, there are different ways that you cann get more information on trademarks. It is recommended that you get in touch with a legal expert to help with the trademark challenges.
Employees/Consultants
As a registered organization, there must be a regulatory framework in place to ensure that the employees and consultants are following due process and structures are in place to safeguard intellectual properties. The devil is always in the details and you don’t want to be open for litigation. You need to sign the right legal documents so that intellectual property is being protected.
Taxes
This is one of the challenging aspects that a lot of blockchain companies are finding it hard to circumnavigate. There are not enough laws to clearly stipulate what should be happening under every possible scenario. The IRS is never kind for companies that are trying to beat the system. You can read up on what happened to online gaming companies trying to manipulate the system with cryptocurrency payments.
Contracts
Are you thinking of having your cryptocurrency listed on a new exchange? You might have to enter into a consulting deal with a firm from abroad. Every transaction will involve a legal contract. You don’t want to be downloading a contract template from the internet because every situation is different.
Outsourcing
You don’t need to outsource everything to an external law firm. It will reach a point where you’ll have to look for a dedicated lawyer for your blockchain project. The attorney should be intimately involved in the day-to-day running of the business.
You need to be careful with attorneys that advertise themselves as crypto lawyers.
A good attorney will have a deep understanding of crypto-related issues and the whole industry at large. Ideally, you should be looking for an attorney that has worked on similar cases to yours. They should have a background representing software developers as they are the people behind blockchain technology.
The industry is fairly new and the title “crypto lawyer” should be treated with caution. Make sure that you’re looking at the specific experience requirements when looking for an attorney for your crypto project. There are attorneys out there who are only interested in making a quick buck and will not care about getting you the best legal counsel. Make sure to check their credentials to determine if they’re the right fit.
