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Understand the Complex Legal Landscape Around Crypto

The advent of cryptocurrencies like Bitcoin and Ethereum has created new legal gray areas. Blockchain technology enables peer-to-peer transactions without third party intermediaries like banks. However, this disintermediation places cryptocurrency outside existing financial regulations.

Potential legal issues include:

  • Taxation – Uncertainty around crypto tax obligations and reporting requirements
  • Fraud or theft – Little legal recourse for lost or stolen crypto funds
  • Smart contracts – Coding bugs or vulnerabilities can lead to exploits
  • Securities law – Decentralized finance (DeFi) projects may qualify as securities

Our team specializes in nascent blockchain and cryptocurrency law. We track evolving government policies and regulations around the world. Our lawyers stay on top of how crypto innovations fit within existing legal frameworks.

Our Team of Accomplished Crypto & Blockchain Lawyers

Our firm’s cryptocurrency legal team has over 15 years combined experience specifically with crypto assets and blockchain technology.

We have advised crypto exchanges and ICO projects on compliant launches. Our lawyers have also represented victims of crypto fraud and homeowners in NFT property title disputes.

Select case examples:

  • Secured $150k settlement for client after uninsured crypto exchange shut down
  • Successfully argued NFT purchase conferred ownership rights to $2M property
  • Won tax exemption for client after arguing crypto mining was a business

“They equipped me with the legal confidence to stand up to the IRS auditor questioning my crypto trading income. I ended up owing nothing instead of six figures in taxes.” – John D., Crypto Trader

“Their blockchain expertise was invaluable for negotiating with the title office. We got the home recorded properly as an NFT deed in the end.” – Mary W., NFT Property Buyer

Schedule a Free Consultation with Our Cryptocurrency Legal Experts

We offer a complimentary 30 minute phone call to introduce our legal services focused on cryptocurrency and blockchain technology.

On this call we can:

  • Learn about your unique crypto legal needs – we’ll ask questions to understand your specific situation
  • Provide initial recommendations – you’ll get expert advice directly from our lead attorneys
  • Discuss options for representation – we can outline scopes and pricing for fully retainer services

To schedule your free consultation with our crypto legal team, visit our Calendly page or contact us at:

  • Phone: (555) 555-5555
  • Email: cryptolegal@ourlawfirm.com
  • Our office is located at 123 Legal St, San Francisco, CA 94105

Cryptocurrency Issues We Can Provide Legal Guidance On

Common reasons clients work with us for cryptocurrency legal help include:

  • Tax planning, audits, and litigation
  • Blockchain contract review for vulnerabilities
  • Compliance for crypto institutions and DeFi projects
  • Recovery assistance for lost or stolen coins
  • Ownership disputes involving NFTs or token rights
  • Support on mergers, acquisitions, and investments
  • Litigation for crypto fraud or IPs

Additionally, our firm has extensive experience with:

  • Initial coin offerings
  • Crypto company formations
  • Token listings and exchange legal requirements
  • Cryptocurrency estate planning and asset distribution

For multi-national organizations, we can tap our network of global crypto legal partners as needed.

Laws and Regulations Around Crypto by Country

Cryptocurrency regulations vary widely across different countries. We maintain specialized regional legal talent to advise on country-specific laws.

North America

The cryptocurrency policy landscape continues evolving quickly in the United States and Canada:

  • USD stablecoins may face tighter restrictions from the SEC
  • Pressure is rising for comprehensive crypto tax policy reform

Talk to one of our North American resident partners for updated guidance on legal considerations in your jurisdiction.

Europe

The European Union takes an relatively open approach toward cryptocurrency:

  • Many member countries have built bespoke crypto tax policies
  • Gibraltar and Malta have pioneered “crypto-friendly” regulations

Connect with one of our EU-based legal advisors for more information on blockchain regulations across Europe.

Asia

Asian countries take a more restrictive stance:

  • China has instituted an outright ban on cryptocurrencies
  • However other countries like Singapore nurture crypto innovation

Discuss your Asia-centric crypto activities with one of our advisors in the region.

 

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Frequently Asked Questions About Cryptocurrency Law

Q: Does crypto require specialized legal representation versus tradition financial assets?

A: Yes – blockchain technology creates fundamentally new legal considerations that most lawyers are not equipped to address. Our cryptocurrency legal team stays on top of the fast evolving landscape.

Q: What can be done if I was the victim of fraud involving cryptocurrency?

A: Unfortunately fraud recovery can be very difficult for certain crypto cases since transactions are irreversible. However all legal options should still be explored. We can analyze transactions, trace funds, and pursue legal action if identifiable parties are liable.

Q: Could minting NFTs put me at risk of intellectual property lawsuits?

A: Creating NFTs can absolutely expose you to IP disputes or allegations of infringement. Our lawyers can perform clearance investigations for NFT projects to fully vet rights ownership. We also defend clients accused of infringing IP with their blockchain activity.

Q: Do you advise institutional clients on legal considerations around crypto investments?

A: Yes – we work extensively with asset managers, hedge funds, private equity firms and other institutional investors providing legal guidance, risk analysis and due diligence services associated with crypto assets. Learn more about our suite of institutional crypto investment services.

See also: When do Cryptocurrencies Violate Securities Laws? Legal Guidelines for Token Sales

Let me know if you would like me to develop any area of this blog post further or have additional questions!

 

Cryptocurrency Tax Guidance

Cryptocurrency tax obligations are complex, with rules that vary significantly across different countries. Below we cover some of the most common areas where clients need guidance on crypto tax planning and compliance:

Crypto Tax Basics in the United States

In the US, the IRS treats virtual currencies like bitcoin as property for federal tax purposes:

  • Purchasing cryptocurrencies is not a taxable event
  • However, trading or selling crypto for a gain does trigger a taxable capital gain
  • Failing to report crypto gains can lead to severe penalties and interest

Our free consultation call allows you to ask our crypto certified public accountants (CPAs) any tax questions related to your virtual currency transactions.

Cryptocurrency Tax Reporting Requirements

US taxpayers with crypto activity have expanded reporting responsibilities:

  • Form 1040 Schedule 1 – Report crypto sales, trades, and disposals
  • Form 8949 – Provide details on transactions behind net gains/losses
  • Failure to report can result in fines upwards of $100k+

We can handle preparing and filing any complex cryptocurrency tax reports with the IRS so you maintain compliance.

DeFi & Yield Farming Tax Implications

Decentralized finance (DeFi) adds additional cryptocurrency tax complications:

  • Reward tokens from liquidity pools & yield farming are taxable upon receipt
  • Exchanging tokens triggers tax calculus – must determine fair market values in USD
  • Use of smart contracts creates massive transaction volumes

Our DeFi experts can manage your token tax reporting, including integrating directly with wallets and chains to import raw data.

Cryptocurrency Tax Planning Opportunities

Proactive crypto tax planning is crucial given shifting policies and confusing guidance from the IRS:

  • Tax exempt vehicles like retirement accounts can defer gains
  • Special trust structures may limit tax liability
  • Some spend options can reduce tax burden compared to cashing out

Let us optimize your cryptocurrency taxes through legal tax minimization strategies.

I can continue expanding this or other sections around legal considerations of cryptocurrency – let me know what other topics would be helpful to cover in depth!

 

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