Cryptoassets and Distributed ledger technologies (DLT), such as decentralized finance (DeFi) and blockchain, have changed how many industries do business today. From raising capital through an Initial Coin Offering (ICO), and transferring bitcoins as part of a money transfer operation, to smart contract-based agreements and leases with customers and suppliers, Blockchain has dramatically transformed the legal framework governing business transactions.
To deal with this paradigm shift, in the application of crypto law to day-to-day business, requires the expertise of a seasoned blockchain lawyer.
Preparing NOW – for What’s to Come
The writings on the wall: Blockchain is entrenching itself deeper into every aspect of business and commerce. And businesses that don’t take steps now, to ensure their blockchain-based operations are on the right side of the law, could face legal and statutory challenges ahead. Here’s what’s to come:
- Many global central banks (including the Federal Reserve) are in advanced stages of planning blockchain-based Central Bank Digital Currencies (CBDC). Once those go mainstream, all businesses – even with tangential blockchain or cryptocurrency affiliation – will have no choice but to comply with associated regulations
- If your business now operates in the blockchain space, expect there to be more opportunities to transact in Bitcoin and other cryptocurrencies in other sensitive sectors, such as Education, Healthcare and Public Safety. To deal with the higher-level of diligence expected from this new customer base, you’ll need to partner with an experienced bitcoin law firm
- Blockchain’s influence will permeate into the world of taxation too, with tax authorities, such as the Internal Revenue Agency (IRS) and its Euro counterparts, carefully scrutinizing business transactions to a higher level. Whether you are a startup business in the bitcoin world, or an established industry player looking to add blockchain transactions to your offerings, it’s important that you understand the tax implications and impact of your decisions
Like bitcoin, which is one use case of the technology, blockchain is causing new business models to evolve, making business transactions more secure and reliable, but also more legally complex and challenging. Only a blockchain lawyer, with a strong bench of attorneys that have a deep understanding of this ecosystem, can deliver true value to clients as they embrace the bold world of blockchain.
Adding Value to Your Business
So how pervasive is blockchain, and what value do legal experts in digital assets and cryptocurrencies bring to the table? Research firm Gartner predicts that blockchain will generate business value in excess of $175 billion by 2025, and will top the $3 trillion mark by 2030. A related study, by consulting firm PwC, of 600 global business leaders, indicated that an overwhelming proportion of them – 84% – were actively involved in blockchain.
Not only do these statistics highlight the inevitability of the ubiquitous nature of blockchain, but they underscore the need for businesses – from crypto startups to established organizations – to prepare for it. One segment, where blockchain will have the most significant impact, is the legal framework. From incorporation and raising capital, to expansions and forging blockchain-driven contracts, to taxation and cross-border payments – and down to business liquidation – only a veteran bitcoin law firm can deliver real value to clients in the evolving blockchain world.