Legal Analysis and Modeling | Case Study of Cryptoassets

In January 2019, Vanzin & Penteado received an extremely rewarding challenge. Entrepreneurs Carlos and Paulo Colombo approached our team to develop a project involving crypto assets.

During the ideation phase, with the prototype still sketched on a sheet of paper, the brothers sought legal advice to assess the project's viability from a regulatory perspective. Therefore, the analysis considered the rules and understandings of the Central Bank and the Securities and Exchange Commission (CVM).

At the time, the environment for entrepreneurship in crypto assets was as uncertain as it is today, permeated by risks and little regulation from the relevant bodies.

The scope of Vanzin & Penteado's technical work, therefore, addressed the regulatory analysis and legal structuring of the project:

1. Study of legal viability of the company that the Consultants intended to establish, in Brazil and/or a foreign country;
2. Alternatives to facilitate the relationship between units based in Brazil and other countries, indicating the best option for Consultants, in light of legislation and Brazilian regulation;
3. Legal feasibility of operating deposits and withdrawals in Brazil, national currency, as well as withdrawals abroad, foreign currency, which the Consultants intended to operate, in light of Brazilian legislation and regulations;
4. Cryptoactive movements between users of different nationalities, via a virtual platform, from the perspective of Brazilian legislation;
5. Safekeeping of valuables in Brazil; It is
6. Definition of CNAE of the Brazilian company.

The technical execution involved in-depth studies of the legal nature and classifications of crypto-assets : tokens, utility tokens, security tokens , cryptocurrencies , stablecoins (fiat-backed, commodity-backed, cryptocurrency-backed, seigniorage-style ), in order to verify the feasibility of issuing virtual currencies by the Fintech company.

Following this, the team developed the legal framework for the operation, presenting alternatives for the company's incorporation in Brazil and/or abroad. Furthermore, the work involved assessing risks and benefits, conducting regulatory analysis, and obtaining technical consultations from the relevant authorities. Finally, the team prepared a report that assisted the entrepreneurs in their decision-making process.

Following this protocol and approval from regulatory bodies, the entrepreneurs confirmed the legal viability of the project and were able to proceed with the initial planning.

“Professionalism and the human side were the biggest differentiators. In the first, I can mention the team's legal knowledge and ability to adapt legal opinions to our Startup's disruptive proposal. In the second, I can highlight the frank and accessible way in which they welcomed the legal uncertainties we had and transformed them into viable actions within the legal sphere.”

Paulo and Carlos, thank you for choosing Vanzin & Penteado for this partnership.

By Kael Moro