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WEB 3.0 METAVERSE LAWYERS

For more information about our Metaverse legal consulting services,

please contact Dilendorf Law Firm by sending an email or calling us at 212.457.9797

Dilendorf Law Firm provides legal consulting services to Web 3.0 and Metaverse companies, brands, artists, real estate operators and users.  

At Dilendorf Law Firm, we are proponents of the digital worlds evolution that presents many exciting opportunities for the companies, brands and consumers. 

Companies of all shapes and sizes are entering the Web 3.0 Metaverses, including Walmart, Sotheby’s, Samsung.   

Fashion and apparel companies, including Dolce & Gabbana  Gucci, Nike, Balenciaga are also joining the Metaverse spree.  The Metaverse refers to Web 3.0 virtual and augmented reality environment, which can be accessed from a variety of platforms, where users can connect and interact online. 

Dilendorf Law Firm attorneys  advise clients on operational, transactional and regulatory aspects of Web 3.0 and Metaverse projects.

ATTORNEYS' EXPERIENCE

ATTORNEYS' EXPERIENCE

Advising NFT gallery on setting up a cryptocurrency payment processing system in compliance with US BSA/AML regulations

ATTORNEYS' EXPERIENCE

Completing a due-diligence analysis for a client on the applicability of state MTL regulations governing digital asset transactions in Metaverse

ATTORNEYS' EXPERIENCE

Completing a chainalysis and BSA/AML report in connection with the sale of a digital parcel of land

Web 3.0 transactions in virtual universes involving digital goods, NFTs, and blockchain token-based digital assets is a complex and multidimensional area of law often requiring intricate practical analysis and application of the following rules and regulations:

At Dilendorf Law Firm, we strive to understand our client’s “metanomics”, backgrounds, objectives, and other critical factors to identify which bodies of law, and specific statutes and regulations, are implicated.

This approach is crucial when:

  • starting small metaverse businesses and selecting/establishing optimal business structures;
  • assisting clients with determining when federal and state money transmitter regulations apply to Metaverse transactions and businesses;
  • assisting clients with purchasing digital parcels of lands in the metaverse after completing title report and KYC/AML checks using blockchain forensic investigative tools;
  • assisting clients with obtaining state-by-state MTL no-action letters or licenses to facilitate cryptocurrency transactions;
  • establishing guidelines for metaverse trading activities for digital stores, galleries, and venues;
  • implementing anti-money laundering prevention and compliance with the Bank Secrecy Act;
  • counseling investors, brokers, and others of the state and federal tax consequences of acquiring, holding, earning income from Web 3.0 metaverse transactions;
  • forming regulated DAOs inside of the metaverse;
  • KYC/AML checks in Metaverse transactions; and
  • maintaining a cutting-edge understanding of metaverse developments and legal or regulatory changes, and keeping our clients informed of how such changes affect them.

Consider the following example:

A digital art gallery launches a store in the Metaverse to sell NFTs and wants to accept payments in virtual currency.  Under the existing legal framework, the digital art gallery in our example could be treated as a money service business (“MSB”).  

The US Department of Treasury issued Regulations to Persons Administering, Exchanging, or Using Virtual Currencies that refer to the participants in generic virtual currency arrangements, using the term “exchanger”.  An exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency.   

An exchanger that (1) accepts and transmits a convertible virtual currency or (2) buys or sells convertible virtual currency for any reason is a money transmitter under the US Treasury Regulations.   FinCEN’s regulations define the term “money transmitter” as a person that provides money transmission services, or any other person engaged in the transfer of funds. The
term “money transmission services” means “the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other
value that substitutes for currency to another location or person by any means.

Metaverse platforms and the financial instruments they offer may contain centralized components.   Legislators and regulations are still far from adapting to the concept of a deregulated DeFi infrastructure and tokenized assets, so the existing conventional legislation must be interpreted to apply to Web 3.0 virtual universes. Decentralized finance is a rapidly-expanding technology in the Metaverse. Given the explosive growth of Metaverse and the “peer-to-peer” economy, that offers no traditional benefits of legal protection, the Metaverse users, businesses and brands should carefully map out risks and liabilities before engaging in Metaverse transactions.

Dilendorf Law Firm attorneys and advise clients on operational, transactional, and regulatory aspects of Metaverse projects.

Resources:

 

For more information about our Metaverse legal consulting services,

please contact Dilendorf Law Firm by sending an email or calling us at 212.457.9797

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