A blockchain lawyer helps clients successfully navigate the ever-evolving regulatory body of law and avoid unnecessary legal risks. Obtaining experienced legal advice allows companies to confidently take advantage of blockchain technology, intellectual property protection, and reduces the likelihood of costly errors in corporate governance.
At Scarinci Hollenbeck, we offer attorneys dedicated to understanding the intersections of technology and the law governing IT. Armed with an understanding of both the technological aspects of blockchain and the complex legal framework that governs its use, we provide strategic counsel across a broad spectrum of matters, including token offerings, blockchain intellectual property development, and cryptocurrency transactions.
Understanding Blockchain Infrastructures
Blockchain is a decentralized software application that tracks data by validating and storing data in blocks that are strung and linked together chronologically in an immutable chain. The data blocks are linked together through the use of a cryptographic "hash" of the previous block, a timestamp, and transaction data.
Blockchain transactions are authorized using a mathematical formula, and each verified computer that is connected to the network receives a copy of the blockchain. The technology-based verification system is revolutionary because it requires no human oversight and no centralized authority, like a bank, to confirm the transactions that occur.
Blockchain is unique in that the data chain is immutable and irreversible due to the hash encryptions. Additionally, all activity on the chain is public across the network and seen by all the nodes. Altering a block of data is virtually impossible because doing so requires cracking the encryptions of all subsequent blocks of data on the chain to get to the block one wants to alter.
While cryptocurrencies like Bitcoin are the most well-known application of blockchain, the technology can underpin virtually any transaction. For instance, blockchain is increasingly used for the following:
- Asset management
- Banking
- Smart contracts
- Supply chain management
- Real estate transactions
- Recordkeeping
- Initial coin offerings (ICOs)
- Non-fungible tokens (NFTs) and other tokenized assets
Complex Blockchain Legal Issues Require Skilled Guidance
Blockchain businesses face the same legal issues every other entity must face, from raising capital to hiring employees to securing their intellectual property. However, businesses in the blockchain industry face the additional challenges of operating in an uncertain and rapidly evolving legal landscape.
To help blockchain businesses overcome these challenges, our blockchain lawyers provide comprehensive counsel on a wide range of legal issues, including:
- Business Formation: Compliance starts with the basics. Blockchain attorneys advise businesses regarding their everyday operations, including entity formation, corporate governance, and capital-raising activities.
- Securities Transactions: Blockchain lawyers advise businesses related to fund formation, initial coin offerings (ICOs), tokenization projects, and M&A transactions. Among other issues, they assist with the legal structuring, documentation, and compliance to ensure successful and legally sound offerings.
- Cybersecurity and Data Privacy: While blockchain technology offers enhanced security and privacy features, it also comes with unique risks. Blockchain and crypto attorneys address issues related to data protection, privacy laws, and cybersecurity, ensuring that clients' blockchain implementations comply with applicable regulations.
- Regulatory Compliance: The compliance obligations of businesses using blockchain can vary significantly based on several factors, such as how they are using the technology and the jurisdictions in which they operate. A blockchain attorney helps businesses comply with state-level licensing requirements, federal securities regulations,anti-money laundering laws, and tax regulations. Blockchain attorneys also advise clients on the legislative developments related to blockchain worldwide.
- Intellectual Property: Blockchain businesses must safeguard their intellectual property (IP). A blockchain attorney helps clients devise a comprehensive IP strategy, including patent applications, trademark registration, and protection of proprietary technology.
- Litigation: Litigation involving blockchain technology has skyrocketed in recent years. Businesses facing investor lawsuits, government enforcement actions and investigations, and business litigation require robust representation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
