Legal risks to consider when job hunting in the Web3 industry
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Legal risks to consider when job hunting in the Web3 industry
Behind high salaries and freedom, you need to keep your eyes open to assess project risks.
Navigating Web3 tides with focused insightsAuthor: Niu Xiaoqing
Perhaps many people have dreamed of having a job like this:
Coding leisurely at the foot of snow-capped mountains in Tibet, calmly joining online meetings by Erhai Lake in Dali, embarking on an impromptu journey while working ✈️……
Web3 makes this dream a reality.
In Web3, distributed work models free people from the need to work in fixed locations, liberating them from the 996 grind and the daily commute. Salaries are often more attractive than those in traditional industries.
As a result, with the rapid rise of the Web3 industry, increasing numbers of people are joining its ranks. Yet despite the appealing labels of high pay, remote work, and freedom, beneath this surface of liberty lie hidden legal risks and a lack of social protection—turning this "adventure of freedom" into a journey filled with contradictions and challenges.
Balancing Freedom and Security
Job hunting in Web3 differs from other industries. Behind the allure of high salaries and freedom lies the necessity to carefully assess project risks.
Due to the distributed nature of work models, many project entities and founders are based overseas. If a project runs into trouble, the boss might walk away unscathed, while employees could find themselves in a situation where "sitting at home brings disaster from the sky."
If a project touches upon criminal issues, not only might your hard-earned income be confiscated as illegal gains, but you yourself could face legal punishment. After all, the original goal of working is to earn money—no salary is worth losing your freedom over.
The Web3 space is a mix of good and bad, with many projects operating in gray areas between legality and illegality. Therefore, clearly distinguishing between legal and illegal boundaries becomes key to earning safely.
There's a saying among the people: "You must live to enjoy the money you earn."
In Web3 job hunting, the ability to identify trustworthy projects matters far more than the salary offered.
People naturally seek benefits and avoid harm. In the business world, some malicious schemes exploit human weaknesses to set traps, turning job seekers into unwitting "bait."
With a solid project—one that has achieved compliance—we can leverage our professional skills and experience to receive fair market compensation (which we usually recognize intuitively).
But if a job offers income that seems like "free money falling from the sky," it's time to sound the alarm. Such seemingly easy gains often conceal significant risks.
Remember, every benefit comes at a cost; income is typically the market’s objective assessment of one's abilities. If you lack informational or skill advantages yet receive unexpectedly high pay, you should carefully consider whether you truly deserve it.
Clear Red Lines: Projects You Must Avoid
When seeking jobs in Web3, it's essential to know which projects are absolutely off-limits. Job seekers must evaluate multiple critical factors. Here are key points to keep in mind:
Know the regulations: Different countries and regions vary greatly in their regulatory approaches toward cryptocurrency and Web3. Some strictly restrict or even ban crypto-related activities—for example, China comprehensively prohibits virtual currency-related operations—while others take a more open approach, actively promoting industry development. Singapore, for instance, supports blockchain and crypto innovation under regulation. Job seekers must thoroughly understand the laws and policies of target jurisdictions to ensure their involvement remains legal and compliant.
Project evaluation: There are countless token-related projects, but quality varies widely. Carefully assess the vision, goals, technical design, and real-world value presented in a project’s whitepaper. For example, Bitcoin’s whitepaper proposed a decentralized electronic cash system with groundbreaking potential and practical application. Also examine whether the project roadmap is realistic and feasible, with clear milestones and timelines.
Team reputation check: The background and experience of core team members are crucial to a project’s success. Consider whether the founders have strong reputations and expertise in the crypto space. Look into their track records of success, technical capabilities, and integrity. Use social media, industry forums, and other channels to learn about the team’s reputation and past experiences.
Exercise caution with token-related roles: Jobs related to exchanges often involve cryptocurrency payments, token economics, and similar elements. Even if a project is registered overseas, serving users within China may classify it as an illegal financial activity—an extremely high-risk scenario that should be avoided.
Maintain technical neutrality: For developers, writing smart contracts is not inherently illegal. However, you must坚决 avoid participating in code designs that enable illicit activities such as money laundering or gambling—examples include coin mixers or betting platforms. Always uphold neutrality and legality in technical development.
Beware of marketing and promotion risks: According to data cited in “Mankun Interview | Job Seekers Must Read: Senior Headhunter Reveals the Golden Rules of Web3 Job Hunting,” business development (BD) roles received the highest volume of inquiries in 2024. Candidates applying for such positions risk being treated as accomplices if they promote projects involved in fraud or Ponzi schemes. A notable case is the Hong Kong JPEX exchange scandal, where several KOLs were arrested for promoting an illegal platform.
Anti-money laundering and counter-terrorism financing: Crypto-related businesses are easily exploited for money laundering and terrorist financing. Companies must establish strict systems for customer identification, transaction record keeping, and reporting suspicious transactions. Job seekers should understand relevant regulatory requirements and the measures their employers take in these areas, and strictly comply during work.
Mankun Lawyers’ Summary
Like you, Attorney Niu is confident about Web3’s future. But while chasing dreams, always stay mindful of compliance risks—only by proceeding steadily and following the rules can you go far.
As written in *Zen and the Art of Motorcycle Maintenance*:
And what is good, Phaedrus, And what is not good——Need we ask anyone to tell us these things? What is good, Phaedrus, and what is not good——do we really need someone else to tell us?
The Web3 industry resembles a "digital-age gold rush," full of technological promise in breaking internet monopolies, yet also riddled with legal and ethical pitfalls.
There is no single right answer when navigating careers in this space—every decision requires your own exploration and judgment.
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