Buzko Krasnov

As the year wraps up, it's a good tradition to reflect on the significant events that shaped the past twelve months. We're no exception and excited to share our insights on the key developments in crypto regulation throughout 2023. This year was nothing short of eventful. Drawing from the famous saying, "First they ignore you, then they laugh at you, then they fight you, then you win," it’s clear that crypto has been deep in the "fighting" stage for some time. Among the notable events of the year were the arrests of the developers behind the Tornado Cash privacy protocol, a targeted crackdown on crypto banks in the U.S., the CFTC's lawsuit against a DAO and its anonymous members, and a wave of restrictive measures from lawmakers. On a brighter note, American courts have been cautious about stepping into a regulatory role, often siding with the crypto industry. This includes decisions like refusing to label XRP as a security, compelling the SEC to allow converting GBTC into an ETF, and throwing out a class-action lawsuit against Uniswap. As we look ahead to 2024, this momentum is expected to persist. A key event to watch is the SEC vs. Coinbase lawsuit, with the first hearing set for January 17, 2024. This case is poised to be a significant determinant in crypto's trajectory. Additionally, with the US presidential election in full swing and crypto becoming a hot topic among candidates, the landscape is set to evolve further. The new President’s appointment of the SEC chair will undoubtedly shape regulatory approaches for the foreseeable future. Dive deeper into these topics in our attached presentation – no email required. And, of course, share with your crypto friends!

Anyone interested in space has most likely heard about the fundamental public law treaties in the field, such as the Outer Space Treaty of 1967 or the Liability Convention of 1972. However, private law agreements – those made between parties exercising their private autonomy – are perhaps even more relevant for emerging space companies, especially in the age of #NewSpace. Among such private space agreements, the following three (in fact, four) are of outmost importance: 1. Satellite Construction Contract: an agreement between a customer and a satellite manufacturer for the design and construction of a satellite. If the customer purchases the off-the-shelf satellite, this contract is replaced with a Satellite Procurement Contract, sometimes also referred to as a Satellite Delivery or Purchase Agreement; 2. Launch Services Agreement (LSA): an agreement between a space launch services provider and a satellite owner or operator to transport a satellite from the Earth's surface into a dedicated orbit. This agreement may be entered into for either a single launch or multiple ones. In the latter case, it is often titled as a Multiple Launch Agreement (MLA). LSAs can also be roughly categorized by the type of launch they cover, namely dedicated, rideshare, or piggyback; 3. Satellite Insurance: an agreement between a satellite owner or operator and an insurer to manage and mitigate the risks associated with satellite operations. There are two general types of space risk insurance – first-party property (or material damage) insurance and third-party liability insurance. The first one, in turn, may be classified into three separate types, namely pre-launch, launch, and in-orbit insurance. These and other legal intricacies of private space activities are addressed in our NewSpace Startup Legal Guide, which is freely accessible here: https://lnkd.in/ek8HdVxT.

I am excited to announce the publication of our #NewSpace Startup Legal Guide. The space industry is flourishing, and we are happy to support startups navigating this dynamic field. I wish I could say that my childhood dream was to become an astronaut. But that's not the case. My fascination with space only began a few years ago after reading "The Space Barons" by Christian Davenport. Since then, I have been eager to break into the industry. Recent developments, like the launch of Starship and several successful Moon missions, have accelerated our efforts. The idea for this guide came a few months ago. We realized that, although there's plenty of material on public international space law, there's a scarcity of resources specifically for private space companies. The guide aims to bridge this gap, providing a foundational resource for aspiring space startup founders. The guide covers nine key areas, including space licensing, launch regulations, insurance, intellectual property, public-private partnerships, and public procurement. This first edition is just the beginning, and we plan to continually refine and expand it. You can download the guide at our dedicated space law page here (no email needed): https://lnkd.in/eSh2XMmt. The guide is primarily authored by my colleague Alexander Usynin, who is currently enrolled in the air and space law program at the University Toulouse Capitole with the financial support of Buzko Krasnov. At Buzko Krasnov, it is in our DNA to work with innovative technologies and startups in the world of bits and atoms.

What happened in the crypto industry last week? Top 3 News: - Tornado Cash Users Appeal US Treasury Decision: Users of Tornado Cash, supported by Coinbase, have filed an appeal against a court ruling favoring the US Treasury. They argue that Tornado Cash's smart contracts do not meet the regulatory definition of 'property' subject to US Treasury sanctions. The appeal also contests the Treasury's definition of 'interest', asserting Tornado Cash has no 'lawful, equitable interest in, or benefit from' its users' smart contracts. https://lnkd.in/evep3ENG - NYDFS Releases New Cryptocurrency Guidance: The New York Department of Financial Services (NYDFS) has issued updated guidelines for cryptocurrencies. Crypto companies are now required to submit their coin listing and delisting policies to NYDFS for approval. These policies will be evaluated against stricter risk assessment standards to ensure consumer protection and minimal market disruption during delisting. https://lnkd.in/eDfj9Hre - ENS Developer Accuses Unstoppable Domains of Intellectual Property Theft: Nick Johnson, the lead developer of Ethereum Name Service (ENS), has accused Unstoppable Domains (UD) of stealing ENS's open-source development work and the 'Resolving Blockchain Domain Names' patent. ENS Labs is prepared to contest the patent if UD does not respond. https://lnkd.in/e2_3gH6a Other News - SEC postpones Hashdex's application to convert a futures-based Bitcoin ETF into a spot ETF. https://lnkd.in/eVgMtuCU - BlackRock files S-1 application for its spot Ethereum ETF with the US Securities and Exchange Commission. https://lnkd.in/eSeXTu6r - FBI arrests suspects in a $10 million fraud and cryptocurrency laundering scheme. https://lnkd.in/eq6UwQg5 - Crypto.com obtains a Virtual Asset Service Provider license in Dubai. https://lnkd.in/ebYagyUG - German bank Commerzbank receives a license for cryptocurrency custody. https://lnkd.in/ehEMvkNj #CryptoNews #Blockchain #Cryptocurrency #Regulation #CryptoLegal #FinTech #CryptoMarket #DigitalAssets

We've just released a series of insightful articles on SAFE, or Simple Agreement for Future Equity — the go-to instrument for securing funding for early-stage startups in the U.S. Check them out on the website of Buzko Krasnov 👇 1/ SAFE: Should’ve Asked For an Explanation is our primer that demystifies key terms, outlines various SAFE structures (Valuation Cap, Discount), and delineates the conversion process with clarity. For added utility, we've included a bespoke SAFE template and a handy Excel calculator. https://lnkd.in/eifRKGiN 2/ Next, explore the specific events that trigger the conversion of SAFE into equity (shares). https://lnkd.in/eRRKCuar 3/ Lastly, drawing from years of advising investors and founders, we delve into the types of conflicts that escalate to litigation and share insights on judicial perspectives. https://lnkd.in/eidTj8Pp Finally, do not forget to check out our legal guides: 👉 Legal Guide for Startup Founders in the USA 2023: https://lnkd.in/ed_Btv8b 👉 Crypto Startup Legal Playbook 2022: https://lnkd.in/eEZdCnQY Visit Degoverned.com for handy tools to craft various SAFE agreements (including YC and our custom template) and other fundraising documents, tailored for both domestic and offshore entities (BVI/CY). Many thanks to Anastasia Belyaeva, Polina Karachentseva, Robert Lynch and Evgeny Krasnov for authoring these pieces!

What happened in #crypto #industry last week? 🔹 Sam Bankman-Fried Verdict: The jury found Sam Bankman-Fried (SBF) guilty on all seven counts of fraud. Sentencing is set for March 2024, with SBF facing up to 110 years. 🔹 New UK Crypto Roadmap: The UK government released a roadmap for crypto financial services regulation on October 30, 2023. It preliminarily defines the legal regime for crypto lending, DeFi tools, and regulated activities, closely mirroring the approach seen in the rest of Europe under MiCA. 🔹 Coin Center vs. OFAC Dismissed: A lawsuit by Coin Center against OFAC regarding Tornado Cash was dismissed. The court did not agree with the plaintiff's stance that the US Treasury’s OFAC exceeded its authority by adding the mixer to the sanctions list. PayPal Subpoenaed over PYUSD: PayPal received a subpoena from the SEC demanding documentation related to the PYUSD stablecoin. SafeMoon Accusations: The SEC accused SafeMoon's leadership of a $200 million fraud. Hong Kong Tokenization Rules: Hong Kong established rules for the asset tokenization process. Marshall Islands DAO Legislation: Amendments were made to legislation regulating DAO registration in the Marshall Islands. #SBF #crypto #legal #SafeMoon #SEC #DAO #PayPal #PYUSD #OFAC #CoinCenter #DeFi