Crypto lawyers are in high demand as regulatory pressures reach boiling point

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Crypto-savvy lawyers will play an increasingly important role in Web3 businesses — especially after the FTX implosion and the industry braces for regulatory turbulence, two legal academics believe.

Thomas Hook, a Boston Law School professor and chief compliance officer at crypto exchange Bitstamp, told TSTIME that Web3 lawyers will soon become “business differentiators” as they face the difficult task of helping businesses navigate uncertainties in the marketplace. field of law and regulations.

This will ultimately determine how quickly companies can get their products and services to market, Hook explains:

“Given the lack of clarity in many regulations and complexity, Web3 companies will continue to need legal and compliance representatives to support them. These types of individuals become business differentiators as they can help or hinder a company from getting to market quickly in a legal and compliant manner.

“Without them, companies could face setbacks as regulators look to get a handle on the industry,” added Hook.

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Senior Research FellowDr. Aaron Lane of RMIT’s Blockchain Innovation Hub told TSTIME that in the current environment, Web3 companies should play it safe and resort to legal advice when necessary.

“Entrepreneurs are used to making decisions under economic uncertainty, but are less good at operating under legal uncertainty.”

Lane explained that the pace of blockchain-based innovation, combined with more than 50 independent digital asset bills introduced in the US Congress in recent times, further illustrates the need.

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He believes some of the best Web3 lawyers will come from the commercial law industry, which is a “critical” foundation for cryptocurrency lawyers.

“A good Web3 lawyer is a good trade lawyer. The best Web3 lawyers in the field today started out as some sort of trade lawyer, and I expect that core foundation will continue to be critical.”

“Knowledge of the technologies that make up the Web3 stack will be increasingly in demand over the next decade,” emphasizes Lane, however.

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For now, however, the industry remains “very niche,” according to CryptoRecruit founder Neil Dundon.

Lane added that much of the legal representation for Web3 companies is provided by outside consultants rather than in-house attorneys, who specialize more in financial services and securities law matters.