As a Web3 firm, Aurum specialises in working with companies and projects operating in the Web 3.0 and blockchain industry, and decentralised finance, as one of the major cornerstones of the crypto worlds, without any doubt forms a substantial part of our practice and experience.
Acting as legal counsel to DeFi projects since 2016, we have been at the forefront of the crypto revolution that is taking place worldwide, and our Web3 attorneys are perfectly placed to understand the sector and know the challenges facing its players.
Unlike others, we are DeFi lovers and seasoned users ourselves. What we love most about DeFi is their commitment to innovation and bravery, regardless of the costs. At times, we may challenge their courage and define some boundaries, but it’s in these moments that we find a perfect blend with our clients – we help them achieve their goals while staying on the safe side and not compromising on innovation.
Work with Trusted DeFi Attorneys
Aurum is proud to be a trusted advisor to renowned DeFi market players and Coinmarketcap Top-100 projects. Among our clients are layer-one and layer-two blockchain network developers, DEXes, decentralised lending protocols, leverage protocols, yield aggregators and stablecoin issuers.
Having remained at the forefront of the industry for years, our DeFi attorneys have a clear understanding of the struggles and challenges our clients face. We are here to bolster your projects with innovative and efficient legal structures and strategies, aimed at facilitating your business ambitions while minimising the regulatory and legal risks involved.
Access International Legal Support for DeFi
In DeFi, the products and services aren’t confined to specific geographical boundaries. We know and respect that, though we sometimes have to interfere with this principle to ensure that the project founders and team don’t get into too much trouble. After all, no one wants them to stop building, especially us.
Aurum partners with DeFi projects originating from all over the world, including the countries of the EU, Switzerland, the US, United Arab Emirates, and countries of the Asia-Pacific region. In the same vein, we craft our structuring solutions and legal strategies with a global perspective, specifically tailored for international projects and teams. Our approach is strategically designed to harness the benefits of diverse jurisdictions and legal systems, offering a robust and flexible legal foundation that turns regulatory diversity into a strategic advantage. This ensures our clients can navigate the complexities of the global legal landscape with confidence and precision.
Let us Deal with Compliance
For DeFi projects, navigating the complex regulatory environment is crucial, whether you're a seasoned blockchain enterprise or a new DeFi initiative. With the global rise of Virtual Asset Service Provider (VASP) regulations and the growing trend of applying traditional finance and securities laws to the virtual asset sector, DeFi projects must meticulously chart their course through these legal frameworks to avoid crossing any ‘red lines’ or getting into real trouble.
The compliance team at Aurum specialises in steering DeFi clients through this multifaceted regulatory terrain. Tailoring our approach to each client's specific regulatory strategy, we guide them in choosing the best jurisdictions for their business structure. This includes assistance with securing necessary licences and state approvals or taking advantage of regulatory exemptions and ambiguities to operate with the least regulatory load possible.
Through the innovative legal solutions and strategic use of complex legal strategies, our advisors work to minimise regulatory and compliance risks for your project. Our priority is always the protection of the project's team and founders from legal exposure and personal liabilities.
Selected services
Discover our specialized legal services crafted for the dynamic world of Decentralized Finance (DeFi). Our experienced team provides comprehensive support, from regulatory compliance to smart contract development, ensuring your DeFi projects thrive in a complex legal landscape.
Legal advice on international corporate structuring.
Assessment of the anticipated project activities, requirements and objectives. Development of an efficient corporate structure, taking into account potential regulatory and compliance implications.
Basic tax planning and advice.
Company formation, establishment of the legal entities and corporate vehicles anywhere in the world, including in the US, UK, Switzerland, Singapore, Hong Kong, UAE, countries of the EU and Asia.
Drafting corporate documents. Corporate governance. Structuring the relationship between the founders and shareholders.
Structuring of international money flows and transactions between the entities of the group, drafting relevant contracts and documentation.
Opening bank accounts and accounts with payment service providers.
Advising on the anticipated fundraising activities, determination of valuation and other commercial terms of the investment transaction. Advising on the availability of different raising options and instruments.
Structuring the round of financing, development of the necessary corporate resolutions, investment instruments, investor agreements, etc.
Structuring the token private sale (presale), development of SAFTs, token warrants or other token sale instruments.
Structuring the equity offering, drafting SAFEs, share subscription agreements, convertible or other investment instruments.
Structuring mixed rounds of financing involving both equity and token offering.
Designing procedures for the AML/KYC and KYT checks, PEP and sanction screenings. Composing the list of restricted jurisdictions. Advising on the implementation of KYC software. Conducting the KYC checks, supporting potential investors.
Facilitating the round of financing, representation, negotiations, execution of the transactional documents.
Advising on the applicability of securities laws and VASP regulations, exemptions available, compliance and regulatory matters.
Assessment of the token design, advising on the tokenomics, token parameters and utility, and the manner of offering.
Review of the whitepaper, project website, documentation and other public materials relating to the token and its offering. Preparation of legal disclaimers, risk disclosure statements, legal notices for the public materials.
Legal advice and recommendations on the marketing and PR campaign.
Legal advice on and structuring of the token allocations, drafting the requisite legal agreements and documents.
Advising on the regulatory and compliance issues.
Structuring the issuance (creation) of the token.
Legal structuring and support for the public token offering, including in the form of airdrop, IEO, IDO, launchpad offering, LBP, etc. Public sale legal design, advising on the token sale terms, drafting the necessary token offering documents.
Legal advice on the token distributions.
Legal review and assessment of the products developed or provided by the project, development of comprehensive legal strategy for the products.
Regulatory assessment and analysis. Addressing legal, compliance and security issues arising in connection with the release or operation of the product.
Product legal structuring. Development of the necessary user documentation, which may include the Terms of Service, Privacy Notice, Risk Disclosure Statement, Legal Notice, etc., as applicable.
Providing instructions on the implementation of the user documentation within the products, collecting user consents, placement of disclaimers, etc.
Drafting the list of restricted jurisdictions where operating the products may pose substantial risks for the project, advising on the methods and instruments that should be employed to restrict the access, etc.
Review of the language used within the product interfaces and in the project public documentation; providing suggestions on the required amendments.
Collecting, structuring and managing the project IP.
Legal advice on structuring and managing the company’s most valuable assets.
Assessment and structuring of the cash flow within the project.
Assistance with the registration of the project trademarks.
Advice on managing project infrastructure.
Review of the project GitHub repository to identify third-party elements used in the product and assess their licensing terms. Ensure compliance with open-source licences, restructure the repository if needed to avoid third-party rights issues.
Advising on the licensing of the product source code, including on the use of semi-open licensing options like BSL 1.1 to protect against potential forks.
Structuring relationships with the project directors, officers, employees, contractors, and advisors.
Preparation of employment contracts and advising on determination of the applicable employment terms.
Drafting the contractor agreements and advising on determination of the applicable commercial terms.
Structuring token and equity incentive plans, developing token/equity allocation agreements, option agreements, etc.
Development of the employee and contractor onboarding procedures.
Payments. Payroll.
Development of the regulatory and compliance strategy for the project and products provided, including DeFi protocols, platforms, dApps, liquidity aggregators, etc.
Identifying the most suitable and efficient compliance approach to the product structuring, advising on the steps to be taken to mitigate major regulatory risks, providing recommendations on related organisational and technical aspects.
VASP, AML/CTF, securities and financial regulations compliance.
Data protection, privacy and GDPR compliance.
Government relations.
Advice on the matters relating to transitioning to a DAO.
Advice on the use of the DAO as a legal instrument for mitigating certain legal and regulatory risks and exposure.
Releasing the DeFi products via the DAO in a so-called ‘DAO launch’.
Advice on the sufficient decentralisation requirements, DAO governance mechanisms, etc. Assistance with the development of the DAO structure, including sub-DAOs and committees.
Designing and forming the necessary legal wrappers for the DAO (via daobox).
Other details
Delve into the highlights of our Decentralized Finance (DeFi) practice, where we present our selected cases and insightful publications.
Developed a cross-border corporate structure for a DeFi project, leveraging differences in VASP and other regulatory frameworks across the globe. Strategically segmented the project into several components placed across different countries, effectively minimising exposure to stringent regulations and licensing requirements.
Structured a $3.4 million seed financing round for a DeFi protocol developer, combining equity and token offerings. Designed investor onboarding procedures, facilitated investor communication and due diligence, and assisted with the closing of the round.
Advised a DeFi project on the issuance and distribution of governance tokens native to the protocol. Assessed token design and tokenomics, developed a regulatory and jurisdictional strategy, and formalised token transfers where necessary.
Consulted the core contributors of a DAO governing a DeFi protocol with over $400 million in TVL on matters pertaining to legal structuring and governance. Designed and established the required legal wrappers for the DAO.
Advised DeFi protocol core developers on the transitioning to a DAO, developed strategy and action plan for achieving sufficient decentralisation and mitigating major regulatory risks involved in the project.
Structured a $2.8 million private financing for a developer of a DeFi protocol in the form of combined equity and token offering. Designed investor onboarding procedures, facilitated investor communication and due diligence, and assisted with the closing of the round.
Performed due diligence and KYC verification for participants of a DAO token sale, or DAO raise, event. Aurum was engaged by the DAO to develop KYC/DD procedures and jurisdictional restrictions, and directly perform the verification of the prospective purchasers.
