The goal of this eBook is to equip Web3 innovators, startups, and entrepreneurs with practical legal guidance specific to decentralized ecosystems. We aim to help you understand the key regulatory frameworks, avoid common legal pitfalls, and make informed decisions about compliance, fundraising, and offshore structuring.
Regulations such as AML (Anti-Money Laundering) and KYC (Know Your Customer) are critical, especially for crypto exchanges and financial platforms, as these ensure transparency and prevent illicit activities. Data protection laws such as the General Data Protection Regulation (GDPR) in the EU and the Personal Data Protection Act (PDPA) in Singapore impacts any platform that collects user data, imposing stringent requirements on data privacy and processing within those jurisdictions and beyond.
The SAFT (Simple Agreement for Future Tokens) framework was designed to help blockchain projects raise capital by selling rights to future tokens. SAFT agreements must comply with securities regulations, as tokens may be considered securities depending on their function and distribution. Failure to comply can lead to enforcement actions, as seen in the case of Telegram’s $1.7 billion token sale, which was halted by the SEC due to non-compliance with securities laws.
Offshore structuring can provide Web3 projects with greater flexibility in navigating regulatory uncertainty, optimizing tax efficiency, and protecting assets. Incorporating offshore can also help projects manage cross-border operations while complying with varying regional laws.