According to Grand View Research, the value of the global blockchain technology market was estimated at USD 10.02 billion in 2022 and is expected to grow at a staggering compound annual growth rate (CAGR) of 87.7% between 2023 and 2030. Director of Regulatory Compliance of the FinTech Association of Trinidad and Tobago, Alexander Gafoor, helps us to explore some of the legal issues surrounding blockchain technology including, why you still may need a real-world contract even if an NFT has a smart contract; some of the legal issues associated with NFTs; reconciling the transparency and immutability of blockchain technology with data privacy legislation; and the valuing of digital assets, particularly with respect to taxes.

 

This episode is also available on SoundCloud, Apple Podcasts, Google Podcast, Spotify, Amazon Music and Stitcher!

Although blockchain technology is still relatively new, increasingly, it (or its variants) is being integrated into existing and emerging platforms and services, thanks to its decentralised, transparent, secure and immutable characteristics. As a result, blockchain or its underlying principles, are being so widely applied that to some degree, the sense of novelty previously associated with this technology is fast disappearing.

Unfortunately, some of the applications built on blockchain technology can find themselves in challenging legal situations, as the law did not contemplate some of the issues that have begun to emerge. Blockchain technology-based platforms and services are emerging and evolving in a (somewhat) vague legal construct, which in turn makes it critical for the existing legal posture and developments to be known and understood.  

 

Introducing our guest

Alexander Gafoor

Alexander Gafoor, BA, LLB, LEC, is an attorney-at-law and the Director of Regulatory Compliance of the FinTech Association of Trinidad and Tobago (FinTechTT). He is also the Chief Legal Officer of Coinsher, a cryptocurrency exchange primarily serving the African and Asian markets, and a Web3 Consultant for Draper Startup House CARICOM, a chain of accommodation and co-working hubs providing opportunities for travelling start-ups, digital nomads, creatives and the larger entrepreneurial community.

He is a seasoned multi-disciplined consultant with over eight years of experience in legal and business consulting. He has a proven track record of success in providing strategic, practical, and commercial advice to clients in a wide range of industries.

Alexander also has a strong background in advising clients on legal matters in areas, including regulatory compliance, KYC protocols, blockchain law, contract law, corporate law, advertising law and intellectual property law. Further, he uses a combination of his keen business sense and expertise in providing business and strategic consulting services, including market analysis, market entry strategies, and business planning.

In addition to his consulting work, Alexander is also a highly skilled communicator and trainer, with a talent for making complex legal and business concepts easy to understand. He is a speaker at industry events and has experience delivering lectures and workshops on a wide range of topics specializing in Blockchain Technology and in particular, the fractionalization of assets and the transformative nature of non-fungible tokens (NFTs).

 

Insight into our conversation

From the start, it is evident that Alexander is excited about the law. However, he is also excited about blockchain technology: the impact it is already having and its potential well into the future.

Having said this, and as much as the global tech community may be excited about the multiple ways in which blockchain technology can be leveraged, to a considerable degree, the corresponding laws and regulations are still underdeveloped. And so, in this conversation with Alexander, we cover a lot of ground, starting with the basics of blockchain technology, a few of the applications it is being used, and highlighting emerging legal issues, some of which have already been addressed in the courts.

We also touch on some of the blockchain-based platforms in the Caribbean to illustrate some of the legal issues that exist, and to conclude, Alexander issues a call to action for those who have been on the fence about blockchain.

Sample of questions posed to Alexander:

  1. To start, what blockchain technology is, and what are some of the ways it is being used?
  2. How does a smart contract differ from a traditional contract?
  3. Do you still need a real-world contract when there already is a smart contract?
  4. What are some of the legal issues with respect to blockchain technology and its application that have emerged and need to be addressed?
  5. For the Caribbean region and its creative community, there has been a lot of excitement around non-fungible tokens (NFTs). What might be some of the legal issues associated with NFTs?
  6. How does the transparency and immutability of blockchain technology reconcile with data privacy?
  7. What are some of the issues surrounding the value or the valuing of digital assets, and the extent they might be taxable?
  8. What might be some of the legal and regulatory challenges associated with Decentralised Finance (DeFi) platforms?
  9. How can we determine whether a fintech is a tech business or a financial services business?
  10. Are there any particular legal issues around Decentralised Autonomous Organizations (DAOs) of which we should be aware?

 

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Select links

Below are links to some of the organisations and resources that either were mentioned during the episode or otherwise, might be useful:

 

 

Images credit:  A Gafoor;  emrahkarakas (Pixabay); Gerd Altmann (Pixabay); Tingey Injury Law Firm (Unsplash)

Music credit: The Last Word (Oui Ma Chérie), by Andy Narrell

Podcast editing support:  Mayra Bonilla Lopez