Cryptocurrency and other digital investment forms continue to grow in popularity. If you are interested in getting involved in this market or even starting your own currency or investment vehicle, there are various legal considerations to keep in mind.
First, let's talk about what blockchain actually does. Blockchain is the technology that actually tracks cryptocurrency transactions. Think of it as a financial ledger for everything that your company or investment group does with cryptocurrency. A traditional corporate firm obviously has lawyer that specialize in accounting or financial transactions. A blockchain lawyer is a professional who can bring this same level of expertise to a company that works in the crypto space. As the crypto market matures, more and more companies and investors are finding that legal services are needed. Here are a couple of reasons why you might need a blockchain lawyer.
Comply with Government Regulations
There is more government oversight than you might think in the crypto market. Yes, it's true that the crypto market was originally seen as being akin to the Wild West where anything goes. But as crypto has grown in popularity as an investment vehicle, this has attracted the attention of government regulators. The exact rules and regulations will vary depending on what you are looking to get into, but just know that you can't just "create" a new cryptocurrency out of thin air. The last thing you want to have happen to your new company is to receive a large fine or penalty that could hamstring your operations or put you out of business.
Stay on Top of Taxes
The IRS has also recently gotten more involved in keeping an eye on the crypto market and blockchain technology. Buying a cryptocurrency low and selling it high is going to be taxed as a capital gain, just like a stock or a mutual fund. A good blockchain lawyer can take a look at your transaction history and might be able to figure out a way for you to save money. But most importantly, you'll be able to make sure you are complying with all local tax laws. Crypto is not a place where you can "hide" money from the government, in other words. The IRS or another government regulator is going to find it eventually, so make sure you get your taxes right the first time.
Contact a blockchain lawyer today for more information.Share