As technology evolves, it changes society and the individual’s relationship to it. This forces the law to evolve as well, requiring legal arbiters and practitioners to become flexible and innovative in creating and enforcing regulations around it. One of the ways that law evolves is in its specialties and areas of study. In this respect, we see specialties emerging that are less similar to a separate and self-contained area of law and more like the study of how a certain field or discipline is expressed through self-contained areas of law.
Cyberlaw is an example of this kind of emerging specialty. A fascinating and complex field that deals with the legal aspects of the internet and digital technologies, cyberlaw itself is not a separate or distinct branch of law, but rather a cross-cutting and interdisciplinary field that draws upon various legal domains, such as securities law, consumer protection law, criminal law, contract law, tax law, privacy law, and intellectual property law. One of the most recent and prominent cases that illustrates the challenges and opportunities of cyberlaw is the FTX investigation.
FTX is a cryptocurrency exchange platform that allows users to trade various digital assets, such as Bitcoin, Ethereum, and Dogecoin. FTX also offers innovative products, such as futures contracts, options, and leveraged tokens, that enable users to speculate on the price movements of cryptocurrencies.
However, FTX has also attracted the attention of regulators and law enforcement agencies around the world, who are concerned about the potential risks and illegal activities associated with FTX’s operations. For example, in September 2021, the Securities and Exchange Commission (SEC) of the United States issued a subpoena to FTX, requesting information about its products and services. The SEC is investigating whether FTX has violated any securities laws by offering unregistered securities or derivatives to US investors.
In addition, in October 2021, the Financial Conduct Authority (FCA) of the United Kingdom banned FTX from operating in the UK, citing that FTX had failed to comply with the anti-money laundering and counter-terrorism financing regulations. The FCA also warned UK consumers that FTX was not authorized to provide financial services or products in the UK, and that they could lose all their money if they invested in FTX.
Each of these legal domains has its own rules, principles, and objectives, which may not always align or be compatible with each other. For instance, securities law aims to protect investors and ensure fair and efficient markets, while consumer protection law seeks to safeguard consumers from unfair or deceptive practices. Criminal law aims to prevent and punish crimes, such as fraud, money laundering, or terrorism financing, while contract law governs the rights and obligations of parties who enter into agreements. Tax law regulates the collection and distribution of taxes, while privacy law protects the personal data and information of individuals. Intellectual property law grants exclusive rights to creators and innovators for their works and inventions.
The challenge of cyberlaw is to balance and harmonize these different legal domains in a way that reflects the realities and needs of the digital world. Cyberlaw must also adapt and evolve with the rapid changes and innovations in technology, such as blockchain, artificial intelligence, or biometrics. Cyberlaw must be flexible and responsive to the new opportunities and risks that emerge from these technologies.
The FTX investigation is a case study that demonstrates how cyberlaw incorporates different kinds of law that are involved in regulating and governing the internet and digital technologies. It also shows how cyberlaw is a dynamic and evolving field that requires constant learning and updating. Cyberlaw is not only relevant for lawyers, but also for anyone who uses or interacts with the internet and digital technologies.