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Bitcoin bar association ethics opinion3/18/2023 ![]() ![]() But, cases exist where lawyers like some aspects of cryptocurrency but still decide they can’t accept it.įor example, cryptocurrencies and the associated transactions get registered on a distributed ledger called the blockchain. Some even find it essential, particularly if the companies work in the cryptocurrency space and accumulated most of their wealth in that format. Lawyers That Work with Tech Startups May Find it Necessary to Accept Crypto PaymentsĪccording to one report covered by TechCrunch, it’s increasingly common for lawyers with tech startup clients to accept cryptocurrencies. Then, they need to think especially carefully about the potential ethical ramifications before drawing conclusions. That means the legal industry at large may feel in the dark due to the lack of authoritative bodies making decisions on the matter. However, other states have highlighted the possible risks. Nebraska is so far the only state to give an official ruling on lawyers accepting cryptocurrencies for payment. That distinction could bring about other complexities, especially regarding the uncertain and varying value of cryptocurrencies. Additionally, the IRS views cryptocurrencies as property, not currency. But, legal professionals have weighed in, and they believe that cryptocurrency does not fit the trust fund model. In that case, lawyers could get in a bind, mainly if the value of the cryptocurrency changes and the client discharges the lawyer before completion of the work billed.įor example, if a client pays a retainer fee, that amount normally goes into a trust and remains the client’s property until the lawyer earns it. ![]() One of the potential issues is if lawyers accept cryptocurrencies as “advance payments” rather than as payment for fees already earned. When diving into the potential ethical dilemmas of offering cryptocurrency as an accepted form of payment, other states-including North Carolina- bring up the Nebraska conclusion. Among the specifications of the ruling was that recipients must immediately convert the cryptocurrencies to U.S. An ethics board in Nebraska was the first to provide it in September 2017. Legal professionals who want clear-cut guidance about accepting cryptocurrencies will find that there’s not much to go on yet. Nebraska Ethics Board Becomes First to Issue Official Opinion One increasingly common moral question on the minds of many legal professionals is whether to accept cryptocurrency payments from clients. ![]() If you’re a lawyer or someone who works in the law field, you know how important it is to stay abreast of changes that may affect how you do business and interact with clients. ![]()
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