As the sector prepares for legal uncertainty in the aftermath of FTX’s demise, crypto-savvy attorneys will play a larger role in Web3 businesses in 2023.
According to Dr. Aaron Lane, Senior Research Fellow at RMIT’s Blockchain Innovation Hub, Web3 enterprises should be careful in the present context and obtain legal assistance as needed.
“Entrepreneurs are used to making decisions under economic uncertainty but are not as good at operating under legal uncertainty,” Lane said.
Lane emphasized the importance of blockchain-based innovation, as well as the recent enactment of over 50 separate digital asset regulations in the United States Congress.
“Knowledge of the technologies that make up the Web3 stack will be increasingly in demand over the next decade,” Lane commented.
KXCO’s legal team boasts extensive experience in the capital markets and holds a prominent position in the field of cryptocurrency law.
KXCO Law’s areas of expertise include assisting prominent and emerging cryptocurrency projects in achieving and maintaining compliance with U.S. securities laws, representing investors and consumers in high-stakes litigation, resolving disputes between customers and cryptocurrency exchanges (including locked accounts and frozen funds), assisting Bitcoin and cryptocurrency exchanges of all sizes in achieving and maintaining compliance with the Bank Secrecy Act and state money transmitter laws, and guiding a variety of cryptocurrency projects.
Web3 attorneys, according to Thomas Hook, a professor at Boston Law School and the chief compliance officer of bitcoin exchange Bitstamp, will soon become “business differentiators” due to the enormous challenge of navigating firms through legal and regulatory hurdles.
“Given the lack of clarity in many regulations and the complexity, Web3 companies will continue to need legal and compliance representatives to support them,” Hook said. “These types of individuals are becoming business differentiators as they can help or hinder a business to get to market quickly in a legal and compliant manner.”
“Without them, companies could face setbacks as regulators are looking to get a handle on the industry,” Hook added.
