In a previous article, we discussed cryptocurrency lawyers. While discussing these professionals, we outlined their importance to Web3 and what it takes to become a crypto litigation professional. This time around, we are considering cryptocurrency law firms – the organization that legal practitioners work for.
Many blockchain firms are often stuck between getting an in-house legal practitioner or outsourcing the duty to crypto law firms. This article will help them make informed choices by providing them with necessary and accurate information.
Crypto law firms are agencies that provide legal advice and support to blockchain companies. They operate similarly to a standard legal representative organization, but their focus is mostly on Web3 firms. The reason is that they are very knowledgeable about the decentralized ecosystem.
These organizations mostly consist of lawyers who are well-grounded in blockchain, its use cases, and the rules guarding its application. You can check out the article on crypto lawyers for a better understanding.
They source contracts from their respective clients and reach an agreement formally documented in a contract. With the agreement in place, these agencies can assign lawyers to these blockchain firms. The lawyers will work as a consultant for the stipulated period of the contract.
The legal practitioners assigned to clients often focus on compliance with regulations to protect the organization. They will advise the firm on which licenses they must get and which ones are not necessary. These lawyers will also make suggestions on the best areas that blockchain companies can consider in case they want to expand.
Meanwhile, the clauses in the contract are very important because they determine the type and extent of services that Web3 institutions will receive from these agencies. If the contract does not include legal representation in court, the company will pay extra if they have a case in court.
According to sources from the web, these are some of the world’s leading cryptocurrency firms:
The decision to choose cryptocurrency law firms or in-house lawyers is often down to two factors: workload and budget. The reason is that how much you have to offer in exchange for legal services and the extent to which you need this assistance is non-negotiable.
One of the worst things to happen to any company at all is to run out of funds necessary for operations. The only other incident worse than that is getting legally stranded because your in-house lawyer made a mistake or is currently unavailable for certain reasons.
For start-ups, it is smart to get an in-house lawyer who will be working more like an independent contractor than a full-time staff. This is more affordable and gives you the financial flexibility to focus on other aspects of operations. If the lawyer knows what he or she is doing, you may not need to visit a courtroom while your project is still developing. Should you need to go to court, it is easier to negotiate with an independent lawyer than a legal firm.
However, blockchain companies can start outsourcing their legal duties to cutting firms as they expand. At this point, the firm has grown from a small start-up to a major establishment. This is such that having a single person work on the company’s legal process will be overwhelming. Even with an in-house lawyer, the institution should have external consultants.
On the other hand, they can choose to build an in-house legal team. Whatever decision you make, ensure to factor in the overall cost and legal workload. The most important thing is maintaining a balance.
