Understanding Web3 Legal - Legal aspects of Web3 Nowadays- Issue 13
In this issue, I'm excited to share insights from a panel I recently attended in Tbilisi, Georgia, at the DeGameFi conference. With the help of ChatGPT, I've distilled the discussions into key highlights for you. You can watch the full video from this link:
Panel Highlights and Discussions
Speakers:
Erdem Mümtaz Hacıpaşaoğlu, Managing Partner of Vircon Legal
Cal Evans , Digital Asset Lawyer
Mohamed Issa , Regional Sales Strategist at Chainalysis
Moderated by Gvantsa Tatoshvili , IBCCS Tax
Opening Remarks: Gvantsa Tatoshvili set the stage by emphasizing the complexities of navigating the legal landscape of Web 3, given its international nature. The panelists, each an expert in their field, were introduced to help shed light on these challenges.
Key Topics Discussed:
Challenges of International Legal Frameworks:
Mohamed Issa: Highlighted the difficulties in dealing with varying international legal frameworks. He emphasized the need for education among law enforcement and regulators. Chainalysis collaborates globally to provide blockchain analysis for illicit activities.
Erdem Mümtaz Hacıpaşaoğlu: Discussed the complexity and the need for constant updates and adaptability in Web 3 legal frameworks. He stressed the importance of understanding and navigating gray areas in regulations.
Jurisdictional Arbitrage and Regulatory Relationships:
Cal Evans: Spoke on the strength of jurisdictional arbitrage in the Web 3 industry. He highlighted the importance of companies educating regulators and building relationships with them, and mentioned the challenges of rapid industry evolution outpacing regulatory frameworks.
Erdem Mümtaz Hacıpaşaoğlu: Added that different regulations and frameworks can be both a curse and a blessing. The challenge lies in balancing safety and flexibility.
Future of Law and Regulation:
Cal Evans: Stressed the importance of consulting lawyers early in the project lifecycle. He emphasized the need for scalability in legal frameworks and proactive engagement with regulations.
Erdem Mümtaz Hacıpaşaoğlu: Agreed on the necessity of early legal consultations and highlighted the potential rise of legal tech and AI in assisting with regulatory compliance in the future.
Tools and Solutions for Regulatory Gaps:
Mohamed Issa: Suggested collaboration between regulators, law enforcement, and the private sector. He cited successful workshops and education initiatives in Turkey and Georgia.
Cal Evans: Highlighted the need for a unified approach to regulations and mentioned the concept of regulatory passporting to simplify compliance across jurisdictions.
Relationship with Traditional Banking Systems:
Mohamed Issa: Advocated for better integration between crypto and traditional banking. He underscored the importance of proper AML, KYC, and KYT procedures to foster trust and cooperation with banks.
Erdem Mümtaz Hacıpaşaoğlu: Discussed upcoming regulations in Turkey and the role of banks in the crypto ecosystem. He expressed hope for a more prominent role for decentralized finance (DeFi) in the future.
Cal Evans: Emphasized the social responsibility of implementing KYC and AML measures, highlighting the foundational principles of Bitcoin and the importance of maintaining control over one's assets.
Audience Q&A:
Rhetorical Question on Wealth vs. Jail: The panel humorously declined to answer a hypothetical question about wealth versus imprisonment.
Privacy Coins: The panel had mixed views on privacy coins like Monero and Zcash. Mohamed Issa and Cal Evans emphasized the social responsibility aspect and the potential risks of anonymity in facilitating illicit activities.
Partial KYC and Future Solutions: The discussion ended with a focus on potential partial KYC solutions using technologies like zero-knowledge proofs, which could balance privacy and regulatory compliance.
Conclusion:
The panel wrapped up with thanks to the participants and attendees, acknowledging the complexity of the topics discussed and expressing hope for continued dialogue and collaboration in the future.