Blockchains and Law

Research on the regulatory picture of blockchains

Building solutions on the blockchain come with many legal questions that need to be answered. Legal frameworks around blockchains are constantly being updated with new laws being drafted globally.

Users, developers, and decentralized organizations need to be aware of the developments, and the legal obligations that come with participating on blockchain. This is why one of our main topics of research is to understand the regulatory landscape.

All research here are outlined in our Project Catalyst proposal. See that here: https://cardano.ideascale.com/c/idea/64605

Research

Our research covers a broad spectrum of thirteen key areas:

1. Legal status of littlefish Action NFTs: Action NFTs are our own technology. They are the records of work, stored as NFTs. What the concept. This new method of doing business, of getting paid, raises questions about its legal implications. Learn about it here: Changing Paradigm of NFTs: LFF Action NFT

2. Legal status of earning through Project Catalyst: There are many earning opportunities in Project Catalyst: proposals, proposal assessments, Challenge Teams, etc. What tax and other obligations earning in this environment is not obvious for all. Learn about it here: LEGAL STATUS AND TAXATION OF EARNING THROUGH PROJECT CATALYST

3. Legal frameworks for Decentralized Organizations: What legal frameworks are available for Decentralized (Autonomous) Organizations? What should be considered? At what point does a DAO/DO need a legal standing? What challenges will new DAOs face if they don’t have legal standing? What legal ramifications are there for organizations and participants of decentralized organizations? Learn about them here: A New Dawn for Corporations in the Age of Digitalization: DAOs

4. Legal framework for tokens and coins: What regulations must blockchain projects adhere to in regards to their tokens and coins to minimize scrutiny by regulators? Security vs commodity classification and its implications. Learn about them here: Legal Framework for Tokens and Coins

5. Legal status of smart contracts: Legal status of smart contracts, its validity and the way the smart contracts are performed are some of the crucial challenges and ambiguities that blockchain community faces everyday. Learn about them here: Legal Status of the Data Stored in Blockchains

6. Legal status of real world-asset backed tokens and coins: How the economic value of the crypto assets are determined is still a vague problem. Some crypto assets’ values are supposedly determined according to the value of the real world assets. In some cases, the question whether these tokens and coins may be considered as option agreements due to the classical approach of legislation in force arose. Learn about them here: Legal Status of Real World Asset Backed Tokens and Coins

7. Legal status of the data stored in blockchains: Due to the storage of massive amounts of data in blockchain, the question whether these data could be considered as personal data or not arose. Learn about them here: Legal Status of the Data Stored in Blockchains

8. Crowdfunding through ICO-ITO and Crypto Assets: Due to its global nature, crypto assets and their initial offerings are inevitably suitable and convenient ways for crowdfunding. In the event that initial offering of these coins or tokens are considered as crowdfunding, the legal regulation that these offerings may be subjected to may dramatically vary. Learn about them here: The ICO Phenomenon: Legal Perspectives on Crypto Crowdfunding

9. Taxation of crypto assets: As the amount of capital that shifts to the crypto assets and relevant platforms, states’ focus inherently shifts towards taxation of these crypto assets. Due to crypto assets’ global and decentralized nature, various serious legal problems may arise such as double taxation, income tax and VAT. Learn about them here: Taxation of Crypto Assets

10. AML/KYC Regulations: One of the most solid reasons why states tend to look sideways at crypto assets and blockchains is due its mostly unregulated status and its ability to conduct transactions between peers without need of any intermediaries. As the states’ ability to track and control transactions decrease, states tend to take more preventive measures. Learn about them here: Regulatory Puzzles in the Digital Era: Assessing Global AML/KYC Standards in the Crypto Sphere

11. Legal meaning and status of whitepapers: During the classification of crypto assets, their whitepapers and the statements in these whitepapers are often instructive. Therefore, how the whitepapers are concluded and the possible interpretation of the meanings thereof play a vital role in the classification of these crypto assets. Learn about them here: Beyond the Hype: The Legal Weight of Crypto-Asset White Papers Across Jurisdictions

12. Intersection of Intellectual Property and Blockchain: As the application and usage of blockchain technologies and its derivative products, infringement of intellectual property of the relevant persons may become widespread. Even though there is no specific regulation on blockchain in many states, classical legal doctrines and rules still find application in developing technologies. Learn about them here: Decoding the Digital Frontier: Exploring the Intersection of Intellectual Property and Blockchain

13. Metaverse and Law: As the technology continues to rapidly develop, even the understanding of what is real and what is virtual becomes vague. It is observed that many people believe that real world legal norms do not apply to Metaverse. On the contrary, legal norms must be strictly taken into account. Learn about them here: Metaverse Unleashed: Exploring the Future of Digital Interaction and Collaboration