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Blockchain Legal Framework

Are smart contracts legally binding in Georgia?

Yes, under the Civil Code and Law on Electronic Documents, smart contracts can be binding if they meet general contract requirements and consent is verifiable.

How can I register a DAO in Georgia?

Georgia does not have a specific DAO legal entity yet. Most DAOs are "wrapped" in a Limited Liability Company (LLC) structure with customized Articles of Association to reflect decentralized governance.

Can I tokenize real estate in Georgia?

Yes, but it requires careful structuring. You cannot validly transfer property ownership solely on blockchain without Public Registry updates, so a legal bridge (SPV) is needed.

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Introduction: The Legal Landscape of Blockchain Technologies

Blockchain is no longer just the foundation of cryptocurrency; it is a technology revolutionizing data storage, contracting, and asset management. Implementing blockchain projects in Georgia requires a solid legal framework to fit innovative ideas within existing legislation. The Blockchain Legal Framework service involves complex legal services for Web3 projects, Decentralized Autonomous Organizations (DAOs), smart contracts, and tokenization initiatives. Since Georgian law is based on the civil law system, regulating blockchain relationships often requires creative and deep legal analysis to translate technical code into legally binding norms.

This service is designed for startups, tech companies, and investors looking to utilize blockchain technology in business processes. A qualified lawyer will help you minimize risks, protect intellectual property, and legitimize your project at both local and international levels.

What Blockchain Legal Services Cover

Specialists offer full legal support for various components of the blockchain ecosystem:

  • Smart Contract Audit: Legal validation of smart contract terms and their compliance with the Civil Code of Georgia.
  • DAO Structuring: Legal formation of decentralized organizations (e.g., as a Limited Liability Company or Partnership) and defining member liability.
  • Tokenization (RWA): Creating a legal model for the digital tokenization of real-world assets (real estate, shares, art).
  • Whitepaper Analysis: Legal expertise of the project's technical documentation (Whitepaper) to ensure it does not contain misleading promises or signs of securities.
  • NFT Project Support: Copyright protection for NFT collections and drafting licensing terms.
  • Data Protection: Reconciling blockchain transparency with personal data protection legislation.

Common Scenarios and Use Cases

The blockchain legal framework is relevant in many innovative scenarios:

  • Hotel Tokenization: A developer wants to sell hotel rooms as tokens, where holders receive rental income. This needs to be structured so it is not considered an unregistered security.
  • Creating an Investment DAO: A group of investors forms a DAO to fund Georgian startups. It is necessary to determine how the DAO will be taxed and who the responsible person is.
  • Logistics Blockchain: A transport company implements blockchain to record cargo movements. The legal force of electronic records needs to be confirmed for dispute resolution.
  • NFT Marketplace: Creating a digital platform for Georgian art where artist copyrights (Royalties) are protected during secondary sales.

Georgian Legislation and Regulations

Regulation of blockchain technologies in Georgia relies on general legal principles. The Civil Code of Georgia recognizes freedom of contract, providing a basis for using smart contracts, though their correct interpretation regarding the "written form" requirement is important. The Law of Georgia on Entrepreneurs is used for corporate structuring of DAOs or other crypto-organizations.

If the project involves financial instruments, the Law of Georgia on Securities Market is relevant to ensure tokens do not qualify as securities without a prospectus. Additionally, the Law of Georgia on Personal Data Protection creates challenges for public blockchains (where data deletion is impossible), requiring specific legal solutions (e.g., off-chain storage).

Process of Working with a Specialist

Collaborating with a blockchain lawyer includes:

  1. Technical Audit: Understanding the project's technical architecture from a legal perspective.
  2. Legal Modeling: Fitting the project into the existing legislative framework (e.g., Utility Token vs. Security Token).
  3. Documentation Creation: Drafting Terms & Conditions, Privacy Policy, and Token Sale Agreements.
  4. Regulator Communication: Consulting with the National Bank or financial supervision authorities if necessary.
  5. Launch and Monitoring: Post-launch legal support for the project.

Why Choose Legal.ge?

Blockchain law is a niche and rapidly evolving field. Legal.ge gives you a unique opportunity to find lawyers specializing specifically in Web3 and crypto technologies. Our platform's specialists will help you turn innovative ideas into reality with full coverage of legal risks.

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