Cryptoasset trading is the financial backbone of the metaverse and Web3 applications, and thanks to advances in technology can take on a variety of shapes and forms. The provision and use of metaverse services and decentralised Web3 applications across borders touch on various areas of law – posing new challenges for digital commerce.
Because there is not yet a uniform regulatory regime for metaverse platforms, fundamental legal issues – such as which law applies, and what that means for crypto trading – have to be resolved case-by-case under established principles such as the provisions of private international law. But while contractual agreements between users and platform operators or between users themselves may offer a starting point, other contributing factors based on the statutory provisions must also be considered.
Contract structuring and the use of smart contracts for the automated execution of pre-negotiated terms are both important facets of digital trading. However, this raises a number of issues – for example, how to translate contractual agreements into smart contracts and how these relate to existing terms and conditions. Although technical aspects are key, warranties and liability also need close attention.
Gleiss Lutz has long been recognised as one of the leading law firms for commercial matters. And this is where our full service approach really comes into its own: Clients benefit from our extensive experience and expertise in different areas of law, combined with cross-practice know-how of both the metaverse and Web3 applications. Whether it’s software development, production, or supply chains and distribution – we advise our clients comprehensively on complex legal issues and assist them in negotiating and standardising contracts, resolving disputes, and planning and implementing complex projects in the metaverse.