Legal, Policy & the Blockchain
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Tudor Stanciu is a lawyer and founder of Digital2Law and Fintech Camp who gives presentations on legal issues related to blockchain and digital technologies. He discusses how the legal framework typically changes after societal changes, not vice versa. When developing blockchain projects, some key considerations are participation, security, and liability. Blockchain could allow for self-regulation by communities due to the fragmentation of legal systems across countries. Stanciu also provides a questionnaire for legal and business issues related to blockchain projects and tokens. He outlines some problems that could arise from the core traits of blockchain like multiple anonymous nodes, and areas of interest like incentivizing employees and internal token economies.
Legal, Policy & the Blockchain
- 2. Inspirational Design2 About me • lawyer, Master’s Degree in Public International Law • 2009 – 2016: Mușat & Asociații; DLA Piper Dinu; Biriș Goran • fmr freelance writer & startup founder (mobile app & intermediary services) • 2015 – 2017: community manager / industry analyst @ TechHub Bucharest, How to Web, MVP Academy • currently: co-founder @ Digital2Law / strategy & partnerships @ Fintech Camp / chapter leader @ Bucharest Legal Hackers
- 3. Inspirational Design This presentation ≠ legal advice ≠ investment advice
- 4. Inspirational Design Core traits of lawmaking Legal framework changes AFTER society changes, NOT viceversa Critical mass before regulating (what is the impact?) The more individuals / entities are involved, the sooner a framework will appear -> seek what is applicable from what already exists
- 5. Inspirational Design5 Biggest challenge in the digital space: fragmentation of legal systems (each country has its own) -> opportunity for self-regulation (by community) Main aspects to consider: • participation (choose resource available to everybody destined to become part of a blockchain); • security (keeping resources safe absent any decision of individual resource stakeholder); • liability (identifying & sanctioning actions contrary to common objective); Blockchain & regulation
- 6. Inspirational Design6 • Can the network / product be built without a token? (utility) • How to fund it? + investment legal framework (“democratising access to investments for everybody” is a fairytale) • What is my blockchain-product/token similar to? How is that regulated? • What rights & obligations do the founding team & the users have one against the other? -> in a blockchain world, “founders” are regular employees first, “shareholders” only based on the quantity/quality/ability to stake the principal resource of the network Legal/biz token self-questionnaire
- 7. Inspirational Design Blockchain beyond crypto Blockchain = a public ledger, located in and accessible from multiple (1) anonymized nodes (2) at once (3), where every transaction is time-stamped (4), node-specific (5), and irreversible after a pre-defined coded-in number of validation steps (6)
- 8. Inspirational Design Problems arising Multiple nodes • any legal requirements re customer persona chosen? • “multiple” = different tiers of access? Is that legal? (discrimination / contrary to consumer protection) • authentication & KYC Anonymity • who is liable for actions of nodes on the chain? • where does liability off the chain start?
- 9. Inspirational Design Problems arising (2) Multiple access at once – what is an acceptable uptime? Time-stamped & node-specific • what rights of access do we need from nodes to their personal data / transaction history? • what is personal data in this context? how do we protect it? Irreversible – off the chain, some transactions are reversible (sale-purchase agreements etc), how to mitigate?
- 10. Inspirational Design Some areas of interest • Incentivising employees in blockchain projects (token value vs stock value) • How does “shorttermism” affect long-term startup success? • Token vesting schedules • internal company token economy (later employees buy more tokens from earlier employees) • Meritocracy systems • sharing benefits, creating the relevant departments • access based on authority and duties carried • Integrating “future-of-work” and the growing base of independent contractors
- 11. Inspirational Design Be responsible. Build sustainably. ts@digital2law.com tudor@fintech.camp