Legal help for crypto projects

[KillB_Legal]

Hey everyone,

I'm building a project that helps crypto companies get good legal structure and access cheaper incorporation service providers. One of the main ideas is avoiding law firm bureaucracy, sluggishness and pricing. Only problem is, it seems most people are unaware or unwilling to look for good (or even optimal) legal structure.

Understandable, since its a murky field and most would rather ignore it. Still, I'd like to get your opinions on whether this a good idea or if I should just leave it up to law firms cuz everyone just accepts that legal stuff is slow and expensive.

I also wanted to ask the community if any of you have run into problems with your own projects because of poor legal structure? I'd love to collect some stories, possibly for later publishing but with permission of course.

Let me know what y'all think!

Thanks

[Mbitr]

Sounds interesting- how far have you got with the project?
As you say, traditional banking and company Incorporation systems are complex, expensive and generally need professional services to help them set up. But there can often be a reason for this. These include and are not limited too, KYC/AML procedures, international tax treaties and company structures.

What sort of streamlining are you looking for? Which jurisdictions are you looking at ? Which banking options - FIAT and crypto are you thinking your clients might need ?

If you can find a clear route through this maze , you’ve got my vote 

[KillB_Legal]

It's actually really far along - our team has been working on it overtime for 3 months.

We've got:
1. Absolutely top class crypto and tax legal experts for the corporate structure design. That means fully compliant ofc but also tax optimized which is always nice
2. A 35-jurisdiction network of incorporation service providers who prioritize us and have low fees

As for streamlining, we haven't gotten enough clients to figure out who our preferred incorporation service providers will be, but once that's determined, we'll polish the process with them and optimize it time-wise.
Overall, early clients might not get the accelerated product, but it will be cost-competitive for its quality.


You asked about financials and banking too. Banking-wise, we can just introduce people to crypto friendly banks in a large number of jurisdictions.

One thing we did think of though is that early startups, especially crypto, have a hard time getting credit lines (let me know if that sounds right!). We're building a corporate credit card that allows crypto deposit as collateral, granting quick access (like 30 minutes or thereabouts) to a FIAT credit line.
Does that sound useful to you guys? Don't know if we should commit on that one 100% yet.

Hope that answers everything for now, let me know if there's anything else.

 

[DaveF]

The biggest issue I see is that people tend to like to work with local providers.
Are you going to be putting yourself out there as a source for people who need help and then put them in contact with a local person or is it going to be one monolithic setup?

The rules here in NY are different then the rules in NJ and those are different then the rules in PA.
Some things are stricter about some things more then others depending on location. And also the amounts of crypto that will be involved.
This is why people get the "warm fuzzy feeling" going with a closer person, who admittedly may not be as good, but has a better idea of what is needed where they are located.

-Dave

[KillB_Legal]

I see what you mean and it makes sense. Law being so complex, I think familiarity and trust become the main factors in deciding who to go with.

That being said, web3 entities are usually global, and web3 founders aren't risk-averse people. If we do things right, we should be seen as a truly global web3 legal service.

How to achieve that is another story. Right now, my strategies to build trust are:
- publishing testimonials
- publishing crypto law content (blogs, linkedin posts)
- Making pricing and processes as transparent as possible
- Getting recognizable partners

Let me know what you think!