Legal Dilemmas and Rational Reflections of Web3 Practitioners

In the Web3 space, many practitioners have concerns about the legal risks associated with their work. Although this industry is full of opportunities, offers high salaries, and has flexible work modes, it also comes with uncertainties and potential risks. Many are confused as to why certain Web3-related activities may still be considered criminal even in the absence of clear legal regulations.

In fact, this concern stems from a misunderstanding of the nature of law. The law has a characteristic of stability, which often leads to a lag in addressing emerging social issues. Taking digital collectibles (NFTs) as an example, although the industry has developed for many years, there is still a lack of clear legal provisions. However, this does not mean that related activities are necessarily without legal risks.

When assessing the legal risks of Web3 projects or work content, the key is to see the essence through the phenomenon. Taking the example of a certain exchange's perpetual contract business being classified as operating a casino, the court's ruling was not solely based on the perpetual contracts themselves, but also considered the specific business model of the platform, including factors such as extremely high leverage and betting against users.

For Web3 practitioners, it is crucial to maintain rational thinking. In the gray areas of law, the determination of guilt and innocence is not black and white. When consulting a lawyer, one should focus on understanding:

1. Criminal risk boundaries of one's own behavior
2. The scope and scale of the judicial authorities' crackdown on relevant actions.
3. What behaviors carry higher risks in practice?

Clarifying these issues helps practitioners better understand the legal implications of their actions and make informed decisions.

It is important to emphasize that certain Web3 businesses do indeed cross the red line in the country, such as unauthorized token issuance activities or business models involving gambling or pyramid schemes. This article aims to urge practitioners to view the industry's current situation rationally, rather than completely denying the legitimacy of Web3 projects.

After understanding the relevant legal risks and the worst possible outcomes one might face, everyone should make prudent decisions based on their own risk tolerance. This not only helps avoid potential legal disputes but also takes responsibility for one’s career. In the opportunity- and challenge-filled world of Web3, staying alert and thinking rationally will be key to success.