YOUR LEGAL EXPERTS in DECENTRALIZED FINANCE

Dilendorf Law Firm provides legal consulting services to DeFi application developers, startups, platforms and users.

At Dilendorf Law Firm, we are proponents of the DeFi evolution and gradual, yet steady, development of the DeFi ecosystem – project-by-project. Being a part of our blockchain practice, DeFi projects especially excite us. As blockchain and fintech attorneys, we are all for the development of an alternative decentralized financial system offering equal access to financial services globally, transparently, seamlessly and free of censorship and other central-authority abuses. Also, successful DeFi projects promote a wider adoption of cryptocurrencies, which is a tremendous benefit for the industry.

While the goal of the DeFi ecosystem is to become “trustless,” or fully transparent and programmable with the help of smart contracts establishing and enforcing the financing terms, the need for legal experts in DeFi is yet to be eliminated.

DeFi platforms and the financial instruments they offer may contain centralized components (such as centralized custody, administration, protocol development, interest rates, margin calls, price feeds, etc.). Additionally, legislators and regulations are still far from adapting to the concept of a deregulated DeFi infrastructure and tokenized assets, so the existing conventional legislation must be interpreted to apply to the DeFi. Furthermore, as the DeFi ecosystem is still at a relatively early stage of development, DeFi protocols, platforms and smart contracts present considerable risks, which have to be properly disclosed to users on the one hand, and addressed by the regulators and courts, on the other hand.

Legal Support of DeFi

Dilendorf Law Firm attorneys and DeFi experts advise clients on operational, transactional and regulatory aspects of DeFi projects, including:

• investment in DeFi projects;
• due diligence of DeFi projects;
• tokenization of DeFi networks;
• regulatory compliance of DeFi projects and communications with regulators;
• KYC/AML checks in DeFi transactions;
• incorporation of DeFi technology by traditional financial services providers.

Resources

• Decentralization, DeFi and MakerDAO – CFTC
• How Blockchain can Impact Financial Services – Overview, Challenges and Recommendations
• Distributed Ledger Technology in Payments, Clearing and Settlement
• The Rise of Bitcoin: Understanding the Ins and Out of this Cryptocurrency
• Examining Regulatory Framework for Digital Currencies and Blockchain
• Opening Statement of Commissioner Brian Quintenz before the CFTC Technology Advisory Committee
• Understanding Blockchains and Their Benefits for Small Business
• Blockchain Disruption and Decentralized Finance: the Rise of Decentralized Business Models
• How Leveraging the Structures Being Cryptocurrency Could Reshape and Rebuild the Post-COVID-19 World