When operating a Web3 job recruitment platform globally, it is necessary to comply with different countries' laws and regulations, including data protection laws and advertising laws.
Written by: Mancun Blockchain Legal Services
If you want to find a job in the Web3 industry, what approach would you choose? Would you go through LinkedIn, job recruitment websites, or native Web3 job recruitment platforms?
Obviously, as domestic regulations on the Web3 industry become stricter, the number of positions within the Web3 industry on traditional domestic recruitment platforms has sharply decreased. Meanwhile, native Web3 job recruitment platforms are more popular among Web3 job seekers due to their high update frequency, numerous positions, high remote salaries, and direct communication with project parties. According to observations by Mancun lawyers, the Telegram groups/channels/WeChat private domains built by common Web3 job recruitment platforms have a user base of over ten thousand, with thousands of users registered for job seeking on the platforms.
Although users can easily find their desired Web3 positions through such platforms, risks always accompany this process.
What do Web3 job seekers care about?
Previously, Mancun lawyers communicated with users who have used Web3 job recruitment platforms to understand the concerns of job seekers, which generally include the following issues:
Privacy Disclosure
Typically, Web3 job recruitment platforms need to collect and process a large amount of users' personal information, such as names, contact information, and resumes, during their operation. For users, this data is often highly sensitive and is usually publicly shared on different online platforms (such as Telegram groups, platform official websites, Notion collaboration forms), increasing the risk of unauthorized access or misuse of data.
Once information is made public online, it may be used by malicious individuals for improper purposes. For example, a job seeker's contact information may be used to send spam emails, make harassing calls or messages, or even lead to more serious identity theft. Furthermore, malicious individuals may use publicly available personal information to induce job seekers to invest in false projects or participate in other forms of fraud, resulting in financial losses.
For Web3 job recruitment platforms, if appropriate measures are not taken to protect user privacy, they may not only violate data protection regulations, leading to regulatory penalties (such as fines), but also face privacy infringement lawsuits initiated by users.
False Information / Scam Projects
When collecting job information from Web3 project parties on Web3 job recruitment platforms, it is often difficult to pre-screen the reliability of the information. According to Mancun lawyers' communication with users, in some cases, platforms need users to report false information or scam projects, and platform management can only remind users to be vigilant within the group.
For example, a project that claims to be a blockchain game project communicates with job seekers on the platform through private messages, luring users to their false official website. Their website automatically downloads phishing plugins onto the job seeker's computer, leading to information leakage. The recruitment information remained displayed on the platform for several days until multiple users reported the situation. Although the platform subsequently removed the recruitment information for the project, it was too late.
False or scam projects often come with highly elaborated fraudulent schemes, which may not only lead to the leakage of job seekers' personal information but also involve financial losses. The platform may be held responsible for failing to timely identify and remove false information, causing harm to users, and may be considered to have failed to fulfill appropriate regulatory responsibilities, thereby facing legal action and compensation responsibilities, including civil liabilities and potential administrative penalties. In certain legal jurisdictions, recruitment platforms may also have a legal obligation to ensure the authenticity and legality of the content provided. Failing to fulfill these obligations may lead to regulatory intervention, including investigation and penalties.
Lack of Transparency in Application Process
Some Web3 job recruitment platforms (mainly through WeChat private domains) usually only provide the platform's email address. Web3 job seekers need to submit their resumes to the platform, which will then be submitted on their behalf. However, most of the time, there is no feedback on whether the submission was successful, whether there was any response from the interviewer, or whether the submission was successful, leaving job seekers in the dark.
The lack of transparency in the application process and the absence of feedback on interview results often bring frustration to Web3 job seekers, which may turn into negative feedback on social media or other public channels, and may even trigger collective lawsuits or the intervention of consumer protection organizations. Consumer protection laws in many legal domains require service providers to ensure the transparency and fairness of their services. The lack of feedback and transparency in the application process may be considered a violation of these legal requirements, exposing the platform to legal responsibilities. Prolonged lack of feedback and opaque handling processes can seriously affect the platform's market reputation. This loss of trust may lead to user attrition, posing a long-term threat to the platform's continued operation.
Difficulty in Identifying Compensation Conditions
One characteristic that sets Web3 apart from traditional industries is that the method of compensation payment often involves the intersection of traditional fiat currency and cryptocurrencies. In the most extreme cases, monthly compensation is composed of a combination of cryptocurrencies issued by Web3 projects, fiat currency, stablecoins such as USDT, and is cross-distributed. However, generally, the publicly listed conditions in job postings only include a rough range of compensation, usually denominated in US dollars.
For Web3 job seekers, thoroughly understanding the compensation structure for each position is time-consuming and complex, especially when compensation involves cryptocurrencies, making risk assessment even more difficult. International labor standards and labor laws in various countries require employers to provide clear and detailed compensation information. The complexity and lack of transparency in compensation on Web3 platforms may violate these legal requirements, exposing employers and platforms to the risk of legal action or fines. In addition, in certain legal jurisdictions, paying compensation in cryptocurrencies may not be considered a legal payment method, which may affect the legality and enforceability of labor contracts. Failure to clearly disclose compensation information, especially in cryptocurrency payments, may constitute misleading behavior and violate consumer protection laws.
Therefore, Mancun lawyers cannot help but ponder: Web3 job recruitment platforms clearly have noteworthy issues in both operational and legal compliance aspects.
How should Web3 job recruitment platforms respond?
Based on the communication with Web3 job seekers, Mancun lawyers believe that the main legal compliance issues faced by current Web3 job recruitment platforms can be addressed by clarifying legal responsibilities and implementing supplementary measures.
Data Privacy Protection
According to China's "Personal Information Protection Law" and the EU's GDPR, as data controllers, Web3 job recruitment platforms have an obligation to protect the security and privacy of users' personal information. Platforms need to implement reasonable security measures to prevent data leakage and ensure that personal information is collected and used only with the user's consent. Violating these regulations may lead to high fines and legal action.
Establishing Privacy Policies: Platforms should establish clear privacy policies to clearly explain to users the purposes of using their personal information, storage periods, and access permissions.
Technical Protection Measures: Introduce encryption technologies such as data encryption and access control to protect data from unauthorized access.
Regular Review: Regularly review data processing activities to ensure compliance with the latest legal regulations.
Data Anonymization and De-identification: Process sensitive information to make it difficult to directly associate with specific individuals, thereby reducing the risk of data leakage.
Information Authenticity
Although Web3 job recruitment platforms do not directly establish labor relations, if users' rights are damaged due to false information, the platform may still be considered to bear certain legal responsibilities. Therefore, it is crucial to clarify the boundary of responsibilities between the platform and users. According to China's "Anti-Unfair Competition Law" and Europe's "Unfair Commercial Practices Directive," publishing false information may lead to fines and legal responsibilities. Failure to effectively verify the authenticity and accuracy of information may harm user rights and lead to legal disputes.
Detailed Service Terms and User Agreements: Clearly define the rights and obligations between the platform and users. When users register and use the platform, they should be clearly informed of relevant terms and obtain user consent.
Strict Information Verification Mechanism: Establish a strict information verification mechanism through a combination of manual review and automated screening to ensure the authenticity and accuracy of information.
User Reporting and Feedback Channels: Establish user reporting and feedback channels to encourage users to report false information and violations, and handle them promptly.
Disclaimer: Clearly publish a disclaimer on the platform, informing users that the platform only provides information aggregation services and is not responsible for the authenticity and accuracy of the information.
Transparency in Processes
According to China's "E-commerce Law" and Europe's "E-commerce Directive," platforms must provide necessary customer service and technical support to safeguard consumer rights. If Web3 job recruitment platforms fail to provide timely feedback and communication, they may be considered to violate consumer rights protection laws, which may not only lead to regulatory penalties but also trigger a trust crisis and legal disputes with users.
Clear Feedback Mechanism: Establish a clear schedule for providing feedback on job applications and ensure timely responses to job seekers' inquiries and complaints.
Complaint Resolution Mechanism: Establish an effective complaint handling and resolution mechanism to ensure that user complaints are properly addressed.
Service Quality Commitment: Clearly define the platform's commitment to service quality in the terms of service, including time limits for processing job applications and communication policies.
Transparency and Compliance in Compensation
According to international labor standards and various national laws, employers and recruitment platforms must provide clear and detailed compensation information to job seekers, and the payment methods must comply with relevant labor and currency regulations in the respective regions. This includes all components of compensation (fiat currency, cryptocurrencies, and their proportions) and their payment methods. Failure to transparently disclose compensation information may violate consumer protection laws, especially in cases where the payment methods may cause financial losses to job seekers.
Compensation Policy and Audit Mechanism: The platform should establish strict compensation policies and corresponding audit mechanisms to ensure the accuracy and transparency of compensation descriptions in all job postings, in compliance with all applicable legal regulations.
Education and Guidance: The platform should provide resources and guidance to help job seekers understand the compensation structure related to cryptocurrencies and their potential risks, enhancing job seekers' risk awareness and decision-making abilities.
Confirmation of Legality: Regularly collaborate with legal advisors to review the legality of compensation payment methods, especially in different legal environments within various jurisdictions.
Transparent Communication: Ensure that all compensation information is clearly labeled in the recruitment process and explain the potential economic and legal consequences to job seekers.
Significance of Compliance Operations
It is noteworthy that when Web3 job recruitment platforms operate globally, they need to comply with laws and regulations in different countries and regions, including data protection laws and advertising laws. Due to legal differences in different jurisdictions, platforms may face compliance risks that could affect their normal operations.
To ensure compliant operations, Web3 job recruitment platforms should establish professional legal compliance teams to regularly review the platform's operational strategies and legal compliance status. The compliance team should have a global perspective and be able to develop corresponding compliance strategies based on legal requirements in different regions. A multi-level compliance review mechanism is also essential to ensure global compliance operations through a combination of internal reviews and external audits. Additionally, Web3 job recruitment platforms should provide continuous legal training for operational staff to enhance their legal awareness and compliance capabilities.
Only by establishing a sound legal compliance system can Web3 job recruitment platforms effectively serve users, reduce legal risks, and ensure their long-term healthy development.
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