Hold Your Horses

Web3 is not lawless territory. Regardless of how the term is defined or conceptualized, a number of existing laws and regulations already clearly apply – in some cases to the activities being conducted in Web3, in other cases to the underlying technologies supporting it and in yet other cases to those engaging with Web3. Overtime many other laws and regulations will be adapted, much like the process we have seen occur repeatedly when new technologies begin to gain traction. When the need for specific changes in law or regulation is identified the pace at which such actions ultimately will be taken – whether to add, revoke or amend – will occur more slowly than may be desired. In the meantime, success or failure in Web3 will depend on understanding what applies now and anticipating future changes.

By Carol Van Cleef^[1]

Web3 is not lawless territory. Regardless of how the term is defined or conceptualized, a number of existing laws and regulations already clearly apply – in some cases to the activities being conducted in Web3, in other cases to the underlying technologies supporting it or in yet other cases to those engaging with Web3. Sometimes, it may not seem as clear what, if any, law, or regulation applies to a particular issue that arises in Web3. But, jumping to a quick conclusion that nothing applies may ultimately be costly and could have real consequences, including lawsuits, the collapse of the business, expensive fines, or even jail.   

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