It happened, Salerno Law managing partner Cliff Savala recalled, because one of the firm’s partners had an interest in crypto, which “gradually” led the firm to transition a team into specialisation in the space.

It’s a move that has paid off, he said, with the past 12 months having seen an “avalanche of people requiring assistance” with crypto matters.

Speaking earlier this week on The Lawyers Weekly Show, Mr Savala and Salerno associate Krish Gosai explained how their firm’s crypto team has “grown quite significantly” in recent times.

“On some of the matters, we have over eight solicitors that are well versed in cryptocurrencies and able to assist on the matters to our clients, who range from ASX-listed businesses through to international exchanges, new token issuers, lending platforms, NFT providers and everyday mum and dad investors,” Mr Gosai outlined.

“It’s quite a diverse range of clientele that we have, and we advise everything from whether new cryptocurrencies are financial products under the Corporations Act, to token listing investments, agreements for future tokens, corporate structuring and also a bit of scam work.”

Cryptocurrencies – that is, digital coins or tokens that can be used as modes of transaction or means of value that are recorded on digital ledgers known as blockchain – are exploding in popularity globally.

Expansion of the firm’s expertise into this space was not just an opportunity for the firm, Mr Savala noted, but also a response to “so many clients” requesting advice.

VIEW ALL

The services provided under this practice area, he detailed, “cover the whole spectrum”, including, but not limited to, drafting commercial contracts for clients who are selling businesses using crypto, clients buying and selling property using crypto, aiding clients in using “the correct platforms and mediums” when investing, and supporting those who have invested in scams on social media.

Part of the reason work in this space is so exciting, Mr Gosai mused, is that it is all so new – both to those in the community and to regulators.

“Crypto is quite a new phenomenon. It’s only really taken off in the last four or five years, and regulations haven’t moved to fit that,” he said.

“I know there’s some developments in Australia for crypto-specific regulations, which hopefully will be introduced in the near future. But, at the moment, in this environment where it’s a bit of a ‘square peg round hole’ situation, we’re trying to fit a new technology into existing frameworks.

“I would very much doubt that back when they’re writing, the legislation had any foreseeable view on what cryptocurrencies would be like or even the notion of cryptocurrency.”

Another difficult, but interesting, question for lawyers in this space to answer, Mr Gosai went on, is how crypto will work in the metaverse.

“That’s a question that I think most lawyers have to answer in the hypothetical at the moment, without clear guidance, but it definitely makes it an interesting space. It means that we can be at the forefront of seeing police assisting regulatory bodies and governments and other businesses and working out a framework for how to deal with cryptocurrencies,” he mused.

“That’s the most exciting part being able to influence that change to make sure that again, consumers are protected. I think that’s what everyone wants. And that’s the biggest concern for most regulators in government is consumer protection. So, at least that can be satisfied, but also not encumbering other innovative businesses when they’re developing cryptocurrencies and metaverse or other platforms as well, because I think there’s definitely a fine balance between innovation and consumer protection with this.”

The transcript of this podcast episode was slightly edited for publishing purposes. To listen to the full conversation with Cliff Savala and Krish Gosai, click below: