Understand Your Rights. Solve Your Legal Problems
Russia became the latest nation to join in the evolving conversation last week as the Bank of Russia called for a blanket ban on the mining, trading and usage of cryptocurrencies in the country. Though it remains to be seen whether any ban will materialise after President Vladimir Putin weighed in on the side of crypto miners, Russia would be far from the first to implement such measures. The list of countries that wholly banned cryptocurrencies includes China, Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh and (as of this month) Kosovo. Forty-two others have passed restrictions to this effect, prohibiting crypto exchanges or limiting the ability of banks to engage with crypto.
What are the factors driving these decisions, and how might they affect the future of global crypto regulation?
The current global ‘crypto crash’ is not the first time that Bitcoin and the wider crypto market has greatly depreciated in value. Similar crashes have occurred in 2021, 2020, 2018, 2013 and even earlier. These cyclical bull and bear runs are owed to the inherent volatility of crypto.
As a decentralised currency independent of the backing of governments or financial institutions, Bitcoin and other virtual tokens allow for greater transactional freedom while being susceptible to extreme price fluctuations sparked by investor speculation and media hype. Crypto’s volatility has spurred the creation of so-called ‘stablecoins’ such as Tether, which do away with the premise of decentralisation by pegging themselves to the price of a stable asset – commonly the US dollar – though these tokens are highly dependent on the resources and good behaviour of their issuers, as was shown when a lawsuit brought by the state of New York found that Tether Holdings did not possess the $69 billion it claimed to be backing its currency.
The current global ‘crypto crash’ is not the first time that Bitcoin and the wider crypto market has greatly depreciated in value.
A case study can be found in El Salvador, which in September 2021 became the first country to adopt Bitcoin as legal tender. Intended to expand financial inclusion and help residents save on annual commissions on remittances, only a small fraction of businesses moved to accept transactions in Bitcoin due to concerns over price volatility and data privacy. The International Monetary Fund (IMF) cited these issues alongside “large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection” in a report recommending that El Salvador remove Bitcoin’s legal tender status.
As an emerging technology, new legislation has been required to define and govern the use of cryptocurrencies, with widespread recognition of the assets among governments a relatively recent development. For some investors, the blockchain’s emphasis on individual users and lack of state regulation is one of its primary selling points. For governments, this lack of regulation presents significant issues, not least the difficulty involved in calculating the tax liability of cryptoassets.
The Indian government touched on this while announcing a bill to ban most private cryptocurrencies in November. In addition to allowing only certain cryptocurrencies to promote the underlying technology and its uses, India will launch its own official cryptocurrency. Prime Minister Narendra Modi has also been outspoken on his wish for deomocratic nations to cooperate on the regulation of crypto to ensure that it does not “end up in the wrong hands”.
Australia has made similar moves towards tighter government oversight of cryptocurrency, announcing its intent to create a licensing framework for crypto exchanges alongside a possible digital currency backed by its Reserve Bank. These measures will likely only become more commonplace over time as governments continue to crack down on large technology companies, particularly in the payments space.
For governments, this lack of regulation presents significant issues, not least the difficulty involved in calculating the tax liability of cryptoassets.
While predominantly identified as an issue by end users, the impact of widespread cryptocurrency usage on the climate has not escaped the notice of governments. The root of the problem lies in crypto’s use of blockchain systems and their reliance upon heavy usage of computer power; each Bitcoin transaction, for instance, requires the majority of computers on the Bitcoin blockchain network to verify the action.
Bitcoin is one of the greatest energy consumers in this respect, with each individual exchange requiring 1,173 Kilowatt Hours’ worth of energy to complete – the rough equivalent to six weeks’ worth of energy consumption in an average American household. Bitcoin mining and transactions alone expend an amount of energy per year comparable to the entire country of Norway.
Aside from the greater impact that this expenditure and the associated carbon emissions have on the climate, crypto’s intensive energy use has an immediate impact on power grids, particularly in developing nations. Following a recent series of power cuts, the government of Iran has claimed that illegal crypto mining has been responsible for “10% of electricity outages this winter”. Meanwhile, Kosovo’s recent decision to ban cryptocurrencies entirely came on the heels of its own string of power outages, for which the government likewise blamed large-scale crypto mining. As climate change becomes yet more prevalent on national agendas, it is reasonable to guess that cryptocurrency restrictions will continue to strengthen as nations reach for new ways of mitigating the crisis.
Cryptocurrency’s usefulness for money laundering and buying drugs online has been known to regulators for years, and its prevalence has never diminished to any great extent – even during crypto bear runs, the volume of ‘dark net’ transactions remains as high as ever. Indeed, illicit activity appears to be the sole area of crypto transactions that is not affected by large-scale price fluctuations.
The COVID-19 pandemic has exacerbated the spread of dark net crypto transsactions, largely in the area of ransomware attacks where infiltrators encrypt a victim’s information and demand payment in their preferred form of cryptocurrency. The worry that crypto’s potential criminal usage may outweigh its benefits was referenced explicitly in the Bank of Russia’s January report calling for a nationwide crypto ban. Turkey’s 2021 crypto ban used language in a similar vein, as did China’s most recent anti-crypto crackdown.
Of course, this potential for risk has not escaped the rest of the international community. The US may soon take a regulatory stance of its own to combat fraudulent crypto practices, with President Biden reportedly readying an executive order asking federal agencies to weigh the risks and opportunities posed by cryptocurrencies.
Regardless of whether or not the US and western Europe take their own steps to curb blockchain trading, the damage that the wave of regulation has inflicted on investor confidence in crypto may already be irreversible. January has seen both popular and niche cryptocurrencies plummet in value, wiping out around $1.4 trillion from the combined crypto market. Bitcoin and Ethereum have both crashed more than 50% from their 2021 peaks, while other assets have fallen more than 80%. Should the US further countries implement crypto restrictions of their own, this slip may be set to grow even more steep.
The staunchest crypto supporters are not dissuaded, however. Online investor communities continue to urge each other to hold their crypto portfolios. In response to the IMF’s recommendation that his government give up Bitcoin as legal tender, El Salvador’s President Nayib Bukele responded with a derisory meme. We can only wait and wonder whether their instincts are right, or if this latest trough might be the one that finally sticks – and what the global regulatory world may look like in 2023.
At the beginning of the year we laid out our Legal Marketing Trends Outlook for 2022, outlining the marketing avenues that will be crucial for law firms’ continued growth in the new year. Those avenues (websites, SEO and social media) comprise some of the best tools for growing a law firm’s client base in an increasingly digital world.
This month we will build upon our earlier advice. Read on to take a deeper dive into the marketing techniques that, when used in conjunction with the above digital platforms, will help your firm to thrive even in a time of heightened competition and uncertainty.
Video is not going away and it is important to consider it when planning your legal marketing strategy for this year, as consumers are increasingly looking to absorb information through video. While some will put the time into reading a long blog post, others who may not have the time will likely prefer and engage more with video content. It has been found that 89% of legal marketers maintain that they get good ROI with video, so it is well worth the effort to at least explore the idea. Another advantage of looking towards video is that only 24% of law firms currently use video marketing, allowing you to get ahead of potential competitors in the field.
However, video is one of the most time-consuming and daunting areas of content that you can attempt – which is why we think that short form video could be the answer to your legal marketing prayers. People are not generally watching many ten-minute videos going into depth on complex legal subjects, but they are gravitating towards shorter (under one minute), more irreverent videos from businesses. Think Instagram Reels and TikTok. Even Youtube have now released ‘Youtube Shorts’, which are one-minute videos that co-exist with their longer form counterparts. These sorts of videos can be perfect ways to humanise your law firm and not only inform and entertain, but also show potential clients a new side to lawyers, opening up new audiences.
People are not generally watching many ten-minute videos going into depth on complex legal subjects, but they are gravitating towards shorter (under one minute), more irreverent videos from businesses.
If you are new to video it is easy to be put off. But there are dozens of great tools to help you start and you can look at several different methods. Many law firms will create animated explainer videos, while others will create their own videos of themselves in front of the camera. Which method you choose may well boil down to whether or not you are comfortable in front of the camera. But the key method to help you on your way is to follow this simple plan:
Understand your audience. Get some data on your existing clients – your target audience – and figure out what they like. Similar to researching keywords, this will help shape your video content.
Define your topic. Figure out what you want your video to be about and make sure it matches up with the audience information you researched earlier.
Write a script. Some people may be lucky enough to simply improvise and produce engaging, funny and enlightening content. Sadly, it does not quite come that naturally for the majority of us. This is where a script helps. Much like writing good content, concentrate on matching what you are saying to your video topic and hone it to contain the information your audience wants in an entertaining manner.
Put time into production. In order for your video to appeal, it is worth putting in a little bit of effort when it comes to recording. Modern camera phones will do a perfectly good job of recording the video in high quality, but if you are talking to the camera (and depending on how professional you want it to look), it may be worth looking at getting a tripod. Make sure the microphone records sound clearly; no one likes a video where you cannot hear what is being said. Lastly, pay attention to the lighting. You do not have to spend a fortune on a lighting rig, but do make sure the room you are shooting in is well-lit.
Make it look good. Once you have shot your video, you need to edit it and make it look great. The good news is that what was once a Herculean task out of reach for many of us is now simple thanks to a variety of online video tools and even native editing features within many social media channels. Popular tools for editing on the fly which allow you to include your company logo and add titles and music include Invideo, Biteable and Wevideo. These can elevate your video content to a whole new level for a small monthly fee.
Distribute it where it needs to be. After going to all the effort of making a great video, do not simply pop it online in a random place. Use the correct channels! If you have created an irreverent jokey take on a legal matter, think about putting it on social media. If it is more serious, then get it on your website as well. And do not overlook YouTube; it remains one of the world’s biggest search engines with over 3 billion searches per month and a major channel that you need to be using to distribute your videos.
Much like writing good content, concentrate on matching what you are saying to your video topic and hone it to contain the information your audience wants in an entertaining manner.
If you are getting into video, then we would also strongly urge you to consider audio. Audio content is on the rise. In fact, if recent trends continue, podcasts in the UK alone are tipped to reach 20 million listeners per month by 2024, which is why you should be considering getting into the space early.
Similarly to video, the idea will be similar: if you create audio content that matches your target audiences intent and queries then you will undoubtedly begin to gain traction. Again, contrary to what many people think, you can create great audio content with nothing more than a smartphone, but getting a mic is not a bad idea either. Another option for doing a podcast is to record your Zoom chat and use the audio from that. If you are struggling for topics, use the video planner above. Consider podcasts that inform your target customers, such as Q&A interviews on subjects that will help to educate listeners.
If you do not have the stamina for podcasts, that does not mean you should simply discount audio as a channel for lead generation. Audio adverts are also on the rise and, much like many other channels, can be targeted. 74% of adults aged 18 to 54 are streaming news, podcasts and music each month, so there is a very rich vein of advertising potential to tap into.
For many, marketing can be overwhelming at the best of times, and when you introduce a plethora of statistics, measurements and data it becomes insurmountable. But with 90% of leading marketers saying that personalisation contributes to profitability it is clear that taking the time to analyse and use data to drive your campaigns is key to a successful legal marketing strategy. In fact, according to Forbes, companies harnessing data-driven marketing are six times more profitable than those who are not. Clearly, it is time to embrace the data to win more clients. But how do you go about using data to get the most out of your marketing?
Set goals for your data-driven marketing campaign. As with every other marketing campaign, you need a goal. Otherwise, you will just be collecting data for no reason. Setting your goal to match the data allows you to collect the right information, which will inform your next steps and show where to look and what insights you will need to run a successful campaign.
For example, think of last month’s example of a divorce lawyer in London. If you want to plan a marketing campaign, you could massively improve performance by seeking out the historical data of when people are most likely to file for divorce. Do more women instigate it more often than men? What is the most common age of people filing for divorce in your location? All of these answers can help to give you insight and mould your campaign.
As with every other marketing campaign, you need a goal.
Use data to gain insight into your target audience. Whether you realise it or not, your law firm will already be collecting a wealth of data on your current and potential clients that you can use to shape your marketing campaigns. If you know that 95% of your existing clients live within a 15-mile radius of your law firm, then why would you waste budget on national campaigns? Use data from your CRM to create customer profiles and then implement them into your marketing plans. Most marketing channels now have simple yet unbelievably advanced tools to allow you to target your potential customers. Finding out who needs to see your adverts could be the difference between wasting money and delivering new clients.
Do not ignore insights and analytics – use them. It is not just the CRM that can help you find out more about your customers. If you have a website and social media channels, you already have access to a myriad of data points on your customers. This can seem overwhelming, but do not be put off. Google Analytics is free and contains a wealth of information on your website that is a lot easier to find than you may think. Similarly on social media, you can receive comprehensive free insights on both Facebook and Instagram that can even narrow down the time of day when people are most active on your pages.
Organise your data. In order to get the most out of your data, it is a great idea to get it organised. How you organise the data is up to you – you can use spreadsheets or something like Google’s Data Studio. But if you do not keep it organised and easy to find, you will give up very quickly and end up not using it, which will lead to missed opportunities.
Track and analyse as you go. It is very important to keep tracking and analysing the data as your campaign rolls out. Look out for reasons why your campaign may not be working, or conversely keep a note of what is working.
Avoid being overwhelmed. All of the above can seem overwhelming, especially if you have not used data-driven marketing before, so start small. Pick one campaign on one channel to test it out. Once you have found your feet, you can build on the technique.
Pick one campaign on one channel to test it out.
A recent 2021 survey highlighted that the second most successful channel for bringing in leads to law firms was Google Local Ad Services. This emphasises the importance of ‘going local’ with marketing. Too many law firms become blinded by the lure of channels that offer national advertising when they should be focusing on their doorstep.
In the same survey, Google Ads also ranked as the channel that most law firms were looking to remove from their marketing strategy in 2022, and I would wager that this is because the majority of them are targeting nationally when their client base is local. Local marketing does not mean ‘pop a flyer through some doors in your local town’ (although it could). Most of the services that you may use already – Google Ads, Facebook, Youtube, Instagram and email – can be specifically targeted at a local audience. Here are a few top tips to help you go local:
Localise your website. Kill two birds with one stone and add local information to your website by adding a range of local keywords and information that will appeal directly to your target local audience. For example, instead of ‘Best Divorce Lawyer’ use ‘Best Divorce Lawyer I North London’. Websites are still the channels delivering most leads for law firms in 2021, so set your website up to appeal to your target local audience. This will also massively help with local SEO, which can be vital to helping your local marketing strategy.
Get on local listings. Get out there and claim all the directory listings you can. Many of them, like Google My Business, are free and offer an invaluable source of information and reviews. Again, although Google and Trustpilot may be national, 59% of people use them as source of information when deciding on services. Other sites to consider are Yelp, Yellow Pages, Better Business Bureau (BBB) and Foursquare depending on your location.
Claim your space, fill it out correctly and ask your clients to submit nice reviews. Those local reviews will have a great influence on other potential clients, and referrals and word-of-mouth marketing are still some of the strongest channels available to your business.
Too many law firms become blinded by the lure of channels that offer national advertising when they should be focusing on their doorstep.
Localise your paid advertising. If you are using any form of paid advertising, you have to start targeting better and more locally. So much money is wasted by law firms by paying for clicks from people who are located hundreds of miles away. All the major paid marketing channels such as Google Ads, Facebook and Twitter offer phenomenally detailed local targeting options that you need to use. Figure out who your local target audience are and select them when you build your audience.
But do not stop there. Write your copy and design your advert for a local audience. Mention your location in the ad copy and include it in the snippets. Add your telephone number. All of these will encourage more people near to you to get in touch.
Get local on Social. Does your law firm use social media? Are you going local on it? If not, why not? Most social media channels allow you to tag locations and other local entities and use local hashtags, which will showcase your local credentials. You can also use it to engage with the surrounding community, councils and people and get your virtual face in the local picture.
Use local marketing channels. In the race towards digitalisation, many law firms have forgotten the power of traditional local marketing channels and the impact they can have on client retention, loyalty, lead generation and reputation – all of which are vital to running a successful law firm. Use local marketing channels that you might have abandoned when you thought everyone went online. Many of these are often also incredibly cost-effective compared to other marketing campaigns. Some local marketing campaigns could include:
All of the above cost a lot less than you might think and will increase your brand awareness for customers who are on your doorstep.
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As we mentioned last month, there is a real risk of biting off more than you can chew if you try to do all of the above at once. Starting small and building up is almost always the best option, and the one that is most likely to generate leads in the long run. So long as you put yourself out there and give your platforms the time investment they need, you should soon have a solid launch pad for your legal marketing to grow.
Artentik is a marketplace for non-fungible tokens (NFTs), which are registered on the Ethereum blockchain network and linked to images relating to art, relics, sculptures, artefacts and other objects of cultural significance, and which are authenticated by Santa Casa da Misericordia de Lisboa. It is the world’s first digital marketplace for religious relics in an NFT format.
Abreu Advogados advised on all legal aspects related to the creation and development of this platform, including interaction with supervisory authorities on virtual asset service providers, contracting with crypto-asset minting providers, crypto-asset exchange and interplanetary file system providers, development of terms and conditions, definition of rights associated with NFTs and tax analysis of the entire operation.
The Abreu team was led by professional partner Diogo Pereira Duarte, partners Ricardo Henriques and Alexandra Courela and included associated partner Joana Maldonado Reis, senior associates Isabel Pinheiro Torres, Susana Duarte and José Maria Alves Pereira and trainee lawyers Sofia Lopes Agostinho and João Carlos de Gusmão.
Fortress have acquired a majority stake in the business through an off-market acquisition of interests held by non-executive shareholders.
The Beauchamps team was led by corporate partner Shaun O’Shea and included partners Damian Maloney (corporate) and Aidan Marsh (real estate), associates Gergana Moran, Paul Gough and Sian Browne and solicitors Julia Drennan and Eilis Scanlon. They also engaged support from law firms in Belgium, the Netherlands and the UK.
Morrow Sodali is a leading company in corporate governance and proxy advisorship services, offering support in the management of shareholders’ meetings and extraordinary transactions. It is led by Alvise Recchi and Giulio Pediconi, and boasts offices across major international financial markets.
Canadian law firm Dale & Lessmann advised on the transaction with a team comprising lawyer Andrew Frei and associate Mandy Jassy. The Dale & Lessmann team assisted Ughi e Nunziante in advising Morrow Sodali.
About Mandy Jassy
Mandy is an Associate Lawyer at Dale & Lessmann LLP in the firm's Corporate and Commercial group. Committed to exceptional clientservice, Mandy acts for clients on franchise agreements, commercial leases, public and private mergers and acquisitions, divestitures, private equity investments, joint venture capital and shareholder agreements and governance arrangements. Mandy regularly advises clients on acquisitions and dispositions of private companies, including transactions that involve structuring components to achieve specific commercial objectives.
Practice Areas:
Canadian Subsidiaries
Corporate Commercial Law
Franchising, Licensing, Distribution & Supply Chain Law
Mergers & Acquisitions
Private Company Law
Mandy Jassy
T: 416-642-3129
Founded by the Pisana family, Procosme S.r.l. is a historic Italian company focused on the research, design and production of cosmetics. The company’s main asset is its R&D laboratory, which is outfitted with cutting-edge equipment and certified production processes to allow Precosme to develop tailor-made formulas and serve industry-leading brands.
Mandarin Capital Partners (“MCP”) is one of Italy’s leading private equity firms that invests primarily in medium-sized Italian companies, focusing on value creation through expansion into international markets. The fund was assisted in the transaction by Gitti and Partners and Cappelli RCCD.
M&A Marcianesi e Associati advised on the matter with a team led by partner Roberto Marcianesi and comprising junior partners Eleonora Marcianesi and Paolo Sacco, as well as lawyer Marina Valente for labour profiles and lawyers Ermanno Ciampani and Erika Marcianesi for legal profiles.
This sale completes the divestment of the M7 CEREF I value-added fund, which comprises a portfolio of 21 logistics, office and retail assets across major European markets. The divestment generates total sale proceeds of €182 million.
M7 is a pan-European investor and asset manager that specialises in multi-tenanted properties. It acquired the 12,900 sqm Mani Business Centre in 2016 and implemented a strategy to upgrade the building and improve engagement with its occupiers. M7 will continue to manage the Centre on behalf of its new owner.
Macesic & Partners advised Raiffeisen Pension Insurance on the sale. DTB advised M7.
The transaction, which remains subject to regulatory approval, is expected to close in Q1 2022.
Since its inception in 2017, hugo’s operations have spread to over 40 cities across six countries: the Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica and Nicaragua. The company provides multi-category marketplace services for food delivery, grocery delivery, pharmacy delivery and eCommerce, in addition to on-demand and financial services, and boasts more than 800 employees and 1.3 million registered users. The transaction is expected to close in Q1 2022 and subject to relevant regulatory approvals.
Delivery Hero is a local delivery platform whose service operates in around 50 countries across Asia, Europe, Latin America, the Middle East and North Africa.
Multiple Dentons offices (Cayman Islands; El Salvador; Honduras; Jamaica; Nicaragua; Trinidad & Tobago and United States) advised Delivery Hero on the acquisition. Ulises Cabera Abogados also advised Delivery Hero. hugo was advised by Greenberg Traurig, Valdés, Suárez & Velasco and Melara & Asociados.
As part of the merger agreement between the two companies, CTP will launch a voluntary public takeover for all outstanding shares in DIR, offering five new shares in CTP for four DIR shares, a value roughly equivalent to €24.94 per DIR share. Shareholders may instead opt for a cash consideration of €17.12 per DIR share. The final minimum price per share is subject to a decision by regulators.
DIR’s portfolio comprises 1.6 million square metres of leasable space across 89 light industrial and warehouse properties in Munich Airport, Berlin, Bremen and Cologne. 88% of the properties are currently occupied and leased to 665 different companies, with an average rent of €37 per square metre. Its acquisition would bring the value of CTP’s portfolio to more than €7.3 billion, up from €6.4 billion.
Dr. Knabe Tax Consulting Company advised on the merger with regard to tax optimisation and the particularities of DIR companies.
Founded in 1996, Dewhurst Lettings is a highly regarded Swindon-based letting agent with the second-highest market share in the area, according to Rightmove. Following more than two decades of growth, founder and owner Mike Dewhurst now intends to focus solely on land and new homes.
The lettings business will transition to become a new Romans branch over the coming weeks. The onboarding of Dewhurst Lettings’ existing employees will see the LRG group’s headcount increase yet further, building upon four separate acquisitions that were completed earlier this year.
Dean Wilson LLP advised on the transaction.
