This is precisely where lawyers come into play — experts capable of understanding, clarifying and structuring the chaos of these new digital realities. Let’s explore why, despite automation and technological advancements, the worlds of Web3 and the metaverse can’t thrive without legal professionals.
Inside the New Digital World
Imagine purchasing a house that doesn’t physically exist but costs real money. Or creating a piece of art you can sell without leaving your home, where the buyer receives not a painting to hang on their wall but a digital record on a blockchain network. This is the reality of Web3 and the metaverse, concepts already transforming our understanding of property, business, and human relationships.
In short, Web3 represents the next stage of internet evolution, built on decentralization, openness, and blockchain technology. In this new version of the internet, information and digital assets are no longer controlled by individual companies or governments. Instead, they exist within a transparent, distributed network. This enables users to conduct financial transactions, enter digital agreements (smart contracts), and manage digital assets—such as NFTs—without traditional intermediaries.
The metaverse, in turn, is a three-dimensional digital space—or a network of interconnected spaces—where users interact with each other and digital objects through avatars. The metaverse creates a fully functioning digital economy: people can buy and sell virtual real estate, start businesses, and host concerts or conferences—all accompanied by actual financial transactions.
What Could Go Wrong? Legal Risks in Web3 and the Metaverse
Although the new digital world might appear simpler and more convenient, it isn’t free from traditional legal challenges. Some issues have become even more complex due to the unique nature of blockchain and virtual spaces.
One of the most significant challenges in the metaverse concerns ownership. In real life, ownership rights are verified by documents and contracts, whereas in the metaverse, ownership of virtual real estate or digital artwork (NFTs) is proven solely by blockchain records. But what happens if someone creates a copy of your NFT and sells it to others? Or if your digital property is stolen through an account hack? Virtual assets are already highly valuable, and protecting them will only become more challenging.
Privacy and data protection issues are equally significant. Web3 is built upon openness and transparency of data, which cannot be altered or deleted. While this ensures trust and secure transactions, it also raises complex dilemmas: What if a user’s data is accidentally or deliberately uploaded to a public blockchain, and there’s no way to remove it?
Another pressing concern is cybercrime and fraud. The more popular the metaverse becomes, the more active fraudsters become, exploiting vulnerabilities in emerging digital technologies. From simple cryptocurrency theft from digital wallets to complex fraudulent NFT projects, criminal methods are becoming increasingly sophisticated. Combating these threats requires new legal strategies and solutions.
Additionally, complicated regulatory questions surround cryptocurrencies and digital tokens. Many countries have yet to clearly define how crypto assets should be regulated. The absence of explicit laws and standards creates gray areas that make it difficult for businesses to operate and increase users’ risks of losing their money.
Therefore, despite all their technological advantages, Web3 and the metaverse require significant legal oversight. Without lawyers capable of understanding and addressing these complex situations, this digital realm could quickly transform from a promising landscape of opportunities into one fraught with endless problems.
New Roles for Lawyers in the Digital World
One of the key emerging roles for lawyers is that of a mediator for disputes in the metaverse. While courts and arbitration institutions in the physical world have well-defined rules, the virtual realm resembles the “Wild West,” with legal frameworks still under development. In this space, lawyers can offer transparent, fair, and efficient dispute resolution mechanisms for conflicts arising among users or companies operating in the metaverse.
Another crucial function involves creating and implementing new legal standards and regulations. Given the absence of clear legislation governing digital assets, NFTs, or cryptocurrencies, it is essential to establish understandable “rules of the game” for businesses and users. These could include ethical codes, corporate guidelines, or even international agreements aimed at preventing disputes and minimizing legal risks in the future.
Moreover, lawyers in the Web3 era act as legal navigators, guiding companies and individuals in adapting to rapid technological advancements and ensuring compliance with applicable laws. After all, legal uncertainty can come at a high cost.
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Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
