Crypto Currency Lawyers: Why Choose a Law Firm with Crypto Currency Expertise?

Posted by on Dec 20, 2021 in crypto currencies, Blog, crypto monnaies, Companies in Israel, Tax Israel-France

Crypto Currency Lawyers

Crypto Currency Lawyers

Abitbol & Associés Law Firm, with expertise in crypto currencies, offers its legal support services, both in advice and in litigation, to its individual and corporate clients. Many areas of crypto currency today justify the intervention of a law firm expert in crypto currencies. We propose through this article to explain the main reasons.

Why choose a support by a lawyer expert in crypto currencies?

Unlike traditional currencies, virtual currencies or crypto currencies still do not have a real regularization and therefore their supervision by the public authorities still lacks visibility.

This is the very principle of crypto currencies, which are intended to be a decentralized monetary value, issued from peer to peer without any intervention from the Central Bank or dedicated control bodies. Being usable only through a decentralized computer network.

Because they escape for the moment from the state management, but affect considerably the economy, the crypto currencies do not enter yet in the state monetary policies, however the majority of the States are working on the creation of a legal framework of this type of currency in order to protect themselves in particular against the money laundering or the financing of terrorism.

To be advised and accompanied by a lawyer having developed an expertise in the field of crypto-currencies can prove to be highly necessary and prudent, considering the fact that this new field is only very little framed legally.

How can a lawyer specialized in crypto-currency law assist you?

Crypto-currencies are today a remarkable alternative to traditional monetary and financial circuits. They can also present the virtue of complementarity for different operations.

Choosing to be accompanied by a lawyer having developed an expertise in crypto currencies within the framework of the operations you are planning to undertake, will allow you to have a perfect visibility on the legal stakes and in particular as for the taxation in force on this type of transactions and/or investments.

ICO / Fundraising in crypto currencies

Raising funds in crypto-currencies can be particularly attractive considering the advantages that such a procedure represents.

This specific fundraising methodology aimed at allowing blockchain players to finance their activity is called the ICO (Initial Coin Offering).

It can be carried out in a distinct manner depending on the entrepreneur’s needs.

Support and advice for investing in crypto-currencies

There are different options for investing in crypto currencies.

To know:

  • Trading crypto currencies on exchange platforms;
    Accepting payment in crypto currencies in return for a good or service you decide to sell.

Taxation of ICO (initial coin offering)

It is imperative to underline that when crypto assets are converted into a currency that has legal tender, or when they are used for the purpose of acquiring a good or a service, they are de facto subject to a specific tax regime.

Indeed, the capital gain generated will be subject to the capital gains regime for investments.

In this context, mastering all the tax aspects inherent to ICOs is imperative.

Understanding the taxation of crypto-currencies

The taxation of crypto currencies must be assimilated beforehand in order to be able to evaluate the taxation of certain operations, whether it is in terms of taxation of bitcoin mining, or even concerning the classic capital gains linked to virtual currency trading.

Obtaining national or international approvals

Obtaining a license is essential if you are considering a future as a crypto-currency broker (exchange platform), or as a digital asset service provider.

However, the choice of the country issuing the license is important and can be critical for the establishment of the platform in certain geographical areas.

Avoiding fraudulent maneuvers in crypto currencies

Investing in crypto currencies implies a reinforced vigilance, indeed it is to be noted the emergence of many scams, as diverse as varied and in particular:

  • Canvassing;
  • Investment platforms;
  • Sports betting via crypto currency;
  • Online payments via crypto currency.

If you have been or are a victim of a fraudulent scam in connection with crypto currencies, it may be wise to contact an expert lawyer, who will perfectly ensure the defense of your interests and rights.

What are the risks represented by crypto currencies?

Investing in crypto assets can be particularly risky:

Money laundering

The fight against money laundering is an obligation falling mostly on banking institutions and crypto assets, due to their decentralized and anonymous nature can obviously promote and participate in the financing of criminal activities.

Being accompanied by a lawyer who has developed an expertise in crypto currencies will allow you to anticipate as well as to apprehend the risks to which you expose yourself by investing in crypto currencies.

What is crypto-currency law?

The law of crypto currencies is still relatively incomplete in the Israeli and global legal panorama.

Nevertheless, several attempts at definitions and qualifications have been regulated, including through a publication of the Israeli Tax Authority, as well as in the jurisprudential framework.

Creating a crypto-currency wallet

A crypto currency wallet is a software that will allow you to send, receive, control and sell your crypto currencies.

It will always consist of a public ID as well as a private key.

The activity of mining crypto currencies

The activity of mining crypto currencies is becoming more and more democratized, since it requires today only the installation of a software on computer.

It can be useful to frame this activity under a legal form, in particular via the creation of a one-man company or with partners.

The said creation of this company will also allow you to deduct from the taxable result all the expenses supported by the acquisition of material for example.

Crypto Currency Lawyers: Why Choose a Law Firm with Crypto Currency Expertise? 1
Our team consists of both French and Israeli lawyers which allow us to fully carry out a thorough expertise in order to ensure an optimal treatment of each case.

Crypto Currency Lawyers: Why Choose a Law Firm with Crypto Currency Expertise? 2

66 Av Victor Hugo – Immeuble LEONARD DE VINCI Paris 16ᵉ
Tel: + 33 (0)1 78 90 03 73
Fax: + 33 (0)1 77 74 63 99

13 Shimon ben Shetah street, 9414713, Jerusalem
Tel: + 972 (0)2 595 63 45
Fax: + 972 (0)2 591 63 26

contact@abitbol-associes.com

 

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