Decentralized Finance (DeFi) represents the most ambitious and complex frontier of the blockchain revolution. It is an ecosystem of automated liquidity pools, decentralized lending platforms, and yield farming protocols that aims to rebuild the financial system without intermediaries. However, this architectural freedom creates a minefield of novel legal risks. A DeFi protocol can inadvertently function as an unregistered securities exchange, an illegal money-lending operation, or an unlicensed asset manager. Our firm provides specialized DeFi legal counsel to shield its creators and participants from catastrophic regulatory and liability risks.
Our advisory process begins with a forensic deconstruction of your protocol's economic and functional reality to provide a definitive legal opinion on the nature of your activities. Our core services include a legal and regulatory analysis of the protocol to assess whether its activities—such as staking, liquid staking, or crypto lending—fall under existing financial regulations. We provide clear guidance on compliance with securities law, banking regulations, and investment management rules under both Georgian and key international frameworks.
Furthermore, we assess decentralization and liability. We advise on structuring your protocol and governance to achieve a level of "sufficient decentralization" that can legally insulate its initial developers from liability. This includes advising on DAO formation and legal "wrapping." Finally, we help you craft robust and transparent terms of service and risk disclosures for your users. Clearly defining the legal relationship and outlining risks in a legally binding agreement is a critical defensive measure. DeFi is not a lawless space; it is a space where new law is being formed, and we help you build a protocol architected to withstand the inevitable wave of global regulatory scrutiny.