single-image

Client Demand for Crypto Payments Needs Cautious Response From Lawyers, Expert Says

Cryptocurrency payments are a topic of increasing interest for United States lawyers following a recent conference panel, Bloomberg Law reported on March 11.

Referencing participants in the 18th Annual Legal Malpractice & Risk Management (LMRM) Conference, which ran from March 5-7 in Chicago, the publication noted the prevalence of cryptocurrency payments in the legal profession, stemming from client demand.

As the cryptocurrency industry and markets mature, more clients are asking to use digital assets for payment.

Doing so can nonetheless yield mixed results, experts advised, with upfront bill payments differing from retainers, which remain in segregated funds for long periods.

“Cryptocurrency does not fit with the model for trust funds — lawyers should not accept cryptocurrency as trust money,” Matthew K. Roskoski, deputy general counsel for Latham & Watkins, who joined the LMRM panel, summarized.

Continuing, Roskoski highlighted the risks, but suggested dealing with initial coin offerings (ICOs) constituted another level of difficulty for legal professionals.

“Working in ICO space [sic] is subject to risk and a liability scheme we have no track record in,” he said, adding:

“[But] there’s real money to be made there so people don’t want to wash their hands of it entirely.”

As Cointelegraph reported, the U.S. in particular continues to languish in a gray area regarding the acceptance of cryptocurrency as payment.

Ongoing state-by-state differences, as well as the changeable nature of the regulatory landscape, have meant interaction with tokens themselves can be a headache for prospective investors.

Leave a Comment

You may also like

Bitcoin

Binance Now Lets Australians Buy Bitcoin With Cash at Over 1,300 Stores

single-image

Cryptocurrency exchange Binance has unveiled a new platform in Australia that allows users to buy bitcoin with cash from high-street stores.

Announcing the news on Tuesday, Binance said the new gateway, called Binance Lite Australia, is cash-to-bitcoin brokerage service accessible through a network of 1,300-plus supported newsagents across the country.

The platform currently offers the option to buy only bitcoin using Australian dollars (AUD), but the exchange said it plans to support more cryptocurrencies and fiat options in the future.

Once users have carried out an account verification processes, they can place an order to buy bitcoin online, deposit cash at the nearest newsagent and receive crypto “within minutes,” according to the announcement.

Binance Lite Australia charges a 5 percent transaction fee plus goods and services tax (GST) on all bitcoin purchases.

Binance CFO Wei Zhou said that the new platform further expands…

View More Article
Bitcoin

$25 Million in 2 Weeks: BlockFi Booms as Bitcoin, Ether Investors Seek Interest

single-image

The Takeaway

  • BlockFi’s interest-yielding deposit accounts, launched in beta in January and fully live this month, have attracted more than $35 million in crypto. Most of it is being lent to institutional borrowers.
  • BlockFi’s terms of service give the company significant leeway over how it uses depositors’ funds and what interest rate it can pay them. This flexibility is needed for the company to grow fast, CEO Zac Prince says.
  • Institutional investors borrow crypto at individualized terms, at interest rates from 4 to 12 percent, and BlockFi can call in the loans at any time.
  • When crypto prices move dramatically, BlockFi manages risks by making borrowers put up more collateral or selling some of it.
  • BlockFi is planning to roll out new products every six months and raise more capital.

–––––––

BlockFi wasn’t the first lending startup in the cryptocurrency market, but it’s likely the one getting the most attention these days — including some heat from community…

View More Article
Bitcoin Blockchain

Winklevoss Capital Partner Sterling Witzke: Dollar Is Not Designed for the Internet, but Stablecoins Are

single-image

Sterling Witzke has been working at Winklevoss Capital — a venture capital firm set up by the famous Winklevoss twins — for five years now. As a professional investor, she is very interested in financing early stage crypto and blockchain projects. She believes that stablecoins are perfectly designed for the needs of internet payments and will steadily gain popularity as the industry evolves.

We talked to Sterling Witzke about the future of fiat-pegged cryptocurrencies, the necessity of proper legal frameworks and the future of the maturing crypto industry.

Clarity is always good for an ecosystem

Ana Berman: How do you think, what will 2019 bring in terms of regulation? The question is related to the ads that Gemini recently launched, which said, in particular, “Crypto needs rules.” Don’t you think it undermines the whole idea of decentralization?

Sterling Witzke: The short answer is no….

View More Article