Last updated on July 6th, 2023 at 11:54 am
When people think of blockchain jobs, they only think about those that write smart contracts, code, create decentralized apps, manage the community, and so on, but very few people realize that they can work in the blockchain space in a legal capacity. As this realm increases, the regulations surrounding it are also on the rise. Different countries have started enacting laws and guidelines to steer the operations of blockchain-related services. Now, more than ever, many organizations in the field have a gaping need for astute blockchain legal consultants to ensure that they are not found wanting by the regulatory organizations. Gone are the days when many viewed platforms in this field as immune to the traditional laws of a region. The US SEC is trying to change this in the United States through its guidelines and legal cases against organizations that flout laws and guidelines.
A blockchain legal consultant is a legal professional that understands the changes in laws guiding the blockchain space and advises organizations in that field. Their job is to ensure that the operations do not flout any guidelines or laws to reduce the chances of sanctions or even court cases brought up against the firm. This means they have to be on top of any new guidelines that have been released by the different regulatory authorities in the region their company works.
Job Description of a Blockchain Legal Consultant
Like their name states, they have to offer legal counsel to the organization that they work in based on the rules that have been released by the government, as well as regulatory authorities. The job description of a legal consultant may differ in some aspects, but the core duties will be discussed. Everything that they do is use their knowledge of the legal practice to improve the profitability, and operations of their client firm. They have to analyze the risks that are linked to the proposed actions that a blockchain company wants to take. Their tasks are focused on analyzing the different issues that may occur, and ways to handle them. Legal consultants are also involved in negotiating, drafting, and reviewing legal agreements between their clients and other organizations.
Some tasks that a blockchain legal consultant will do regularly on the job will be discussed below.
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Steer the daily legal affairs of the organization.
For decentralized finance startups that are based in fast-paced countries like the US, where new legislation concerning this realm is passed, there is a greater demand for legal consultants. The guidelines released by SEC, IRS, and other regulatory bodies may be different from what was obtainable in the past. A legal consultant is expected to keep themselves abreast with these alterations and ensure that their clients adapt to them.
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Draft regulatory filings with the authorities and other parties
Before a new financial product is released into the market, DeFi firms have to seek permission from SEC and similar regulatory bodies to ensure that they are not breaking any law. This is common for those crypto and NFT companies that operate in the US. The likes of Coinbase have to file with the SEC before a new financial product is released to Americans to prevent a lawsuit against them. It is the duty of the legal consultants in those firms to handle this. Apart from filing with the authorities, the legal department is also involved in developing a relationship with key players like the insurance sector.
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Carry out intense research on tax laws.
For every firm, there are different tax laws that guide their operations. For example, any company operating in a region has to pay corporate tax on their profits. They also have to remit the taxes deducted from their employees’ salaries to the government. A legal consultant in the blockchain space has to understand the different taxes that their clients have to pay and find out legal loopholes to reduce the tax paid.
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Support the blockchain firm in court cases of different kinds.
The blockchain realm is quite grey because regulators are unable to be at par with the changes that are happening on the scene. The ambiguity of this nature increases the probability of a company being sued by the authorities, other firms, and individuals. For example, Ripple is not a stranger to litigations, subpoenas, and complaints. A legal consultant will help in reducing the risk that a dispute comes up, but when it happens, they offer a strategy to alleviate the burden that may occur because of the case. They are also involved in gathering facts to absolve their clients of any blame or reduce the weight of the blame placed on them.
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Create, negotiate and analyze legal agreements.
The crypto world is filled with partnerships between different platforms for different reasons. Usually, the collaborations are done to improve the operations and achieve the goals of the different participants. Before an agreement is reached, a legal consultant will negotiate with other parties, draft an agreement and review the contract and documents submitted by others. The goal is to ensure that their client is not fleeced or at the short end of the stick.
Skillset of a Blockchain Legal Consultant
Every blockchain legal consultant is expected to possess some skills if they are to excel in their job descriptions.
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Attention to detail
The tasks that legal consultants carry out daily are delicate, meaning that they have to ensure that mistakes do not happen. A legal error could be disastrous for any company, especially if it is in this space. Attention to detail means that the legal professional should go through everything with a fine-tooth comb, and ensure that there is no room for error. Having this skill will not only make the job easier, but it will also reduce the chances of making mistakes that could lead to loss of great magnitude.
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Understands the laws of a region
Legal consultants should be adept with the laws and guidelines guiding the regions that their blockchain clients operate. They have to know when a change has been made, and even legal loopholes that can be used by their clients to gain a competitive advantage over their competitors.
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Knowledge of crypto space
It is a given that anyone working in the blockchain realm should have an in-depth understanding of what happens. As a legal consultant in this space, it is paramount that you possess an intense knowledge of the intricacies of the field to offer your clients credible advice.
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Astute communication skills
A great deal of the legal consultant’s job is to communicate with others in the company. They have to communicate both orally and in a written format, and it is wise to nurture this skill.
Companies That Hire a Blockchain Legal Consultant
Every organization, be it an NFT marketplace, a DeFi firm, a crypto company, or a DAO, needs the services of a legal consultant that is versed in both blockchain and the laws concerning it. The clampdown by the government has increased the need for a legal professional to aid the operations of companies in this field. Gone are the days when governments and regulatory authorities turned a blind eye to blockchain activities.
Salary of a Blockchain Legal Consultant
As a novel field, blockchain jobs usually come with lucrative benefits and incentives. We will compare the salary of a regular legal consultant to that of a legal professional working in the blockchain space.
According to Glassdoor, ‘The US national average salary for Legal Consultant is $91,178 per year in the United States.’
Based on a report by uToday, a blockchain legal consultant makes $100,000-$190,000.
How can I become a blockchain legal consultant?
A legal consultant is expected to have undergone some University education, possess the necessary license and understand the blockchain space. This job is different from others in the blockchain realm like UI/UX, smart contract development, and so on, where anyone can learn in some months.
The stress that may come from being a blockchain legal consultant is worth it when compared to the perks attached to it. There is a high demand for professionals at the moment, and the salary range falls into six figures. For someone that is licensed to practice as a legal practitioner, they can switch into this field. Below are some resources that can help.
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Join crypto communities
Every blockchain-based platform has a crypto community on social media channels like Telegram, Discord, and Reddit. To learn about this field, there are a lot of free resources in those channels. Apart from learning, a potential blockchain legal consultant can get a job by being active in those communities.
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Use free resources on YouTube
There is hardly any topic that has not been covered by professionals on YouTube, and the great aspect is that it is free to use. This is a starting point for anyone that wants to learn something new.
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Try out courses on blockchain legal consultancy
Different online education platforms offer both free and paid courses in this field that could be used to one’s advantage.
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Begin an internship
Before one can get the dream job as a blockchain legal consultant in a notable organization, one is expected to have experience. How can one have experience if they do not have a job? It is a cycle that can be broken by offering to be an intern to garner experience.
In Conclusion,
- A legal practitioner can make a switch and become a blockchain legal consultant.
- Making a switch is not as difficult as one may think as long as they use the necessary resources.
- There are some skills that every blockchain legal professional is expected to possess.
- Every blockchain-based company needs the services of a legal professional.
- There are a lot of free and paid resources on the internet to aid the switch.
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