![]() ![]() Yes. The main concern is the client paying in bitcoin and then the price dramatically changing which might trigger a violation of the "unreasonable fee" rule. The Committee stated that the lawyer must (1) notify the client that the lawyer is immediately converting the digital currency to dollars (2) make the conversion through a payment processor and (3) credit the client's account at the time of payment.īE CAREFUL: although not mentioned in the Opinion, I could foresee a situation where a lawyer in the firm has a bitcoin wallet and accepts the bitcoin from a client, converts it into dollars, and then pays the firm. Depending on your local laws, that could be illegal money-changing (even though it seems innocuous since the lawyer would not be "gaining" anything other than expediting payment for the firm)Ģ. Can a lawyer accept bitcoin from third parties for client's benefit? The full Nebraska Ethics Advisory Opinion for Lawyers 17-03 is here.īefore we get the substance, the 10-page opinion (calmly) walks the reader through the basics of blockchain technology and makes points which are often missed: (1) bitcoin is not anonymous (an all too frequent mistake to claim that it is) (2) bitcoin is used by "legitimate business" (3) bitcoin is "subject to extensive regulation" and (4) there are levels of precaution a holder of digital currency can take, up to cold storage. For example, while I was once guilty of it myself in a 2014 article, the Opinion avoided the frequent (but weak) comparison of bitcoins to tulips.ġ. Can a lawyer accept bitcoin as payment? ![]() The questions presented were: (1) can a lawyer accept bitcoin as payment (2) can a lawyer receive payment in bitcoin from third parties for the benefit of a client and (3) may a lawyer hold digital currencies in trust/escrow. The answers to all three questions is "yes" with some instructions. A lawyers' ethics committee appointed by the Nebraska Supreme Court issued an opinion regarding whether lawyers in that state could receive payments in bitcoin receive payments from third parties in bitcoin and/or hold bitcoin for their clients. This applies to any digital currency. The committee was clearly well-informed and wrote in a tone that was neither evangelical nor panicked when it comes to virtual currency. Note, this Opinion does not control in other jurisdictions however it is suggested that lawyers compare the wording of their local rules to the Nebraska rules in order to assess how persuasive or helpful this Opinion may be outside of Nebraska. ![]()
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