book-cover
Pseudonymous Employees and the Law.
Emmanuel Eyo
Emmanuel Eyo
a year ago

Satoshi Nakatomo - The well known popular creator of Bitcoin. If you have been curious enough to do a search about Satoshi you will realize that the true identity of him/her/they is not known. No one knows if Satoshi is a person or a group of people.

Strange? Well, it is the digital age, get used to the rising concept of pseudonymity. 

What is Pseudonymity?

Pseudonymity refers to the practice of using a fictitious name or identity to conceal one's true identity. 

Is there a Difference between Pseudonymity and Anonymity?

Yes. Pseudonymity and anonymity are two concepts that are often used interchangeably, but they have different meanings.

Pseudonymity refers to the use of a false name or identity to conceal one's true identity, while still maintaining a consistent identity across different platforms.

In other words, a pseudonymous person is known by a specific username or pseudonym, but their true identity is not necessarily known. For example, Satoshi Nakamoto, the creator of Bitcoin, is a pseudonymous figure who remains unknown despite the widespread use of his cryptocurrency.

Anonymity, on the other hand, refers to the complete absence of personal identity. In this case, a person's name, identity, and other personal information are not revealed or known by others.

An anonymous person may not have a consistent identity across different platforms, and may be known only by a temporary username or nickname.

For example, a user on an online forum who creates a throwaway account to make a single post and then never uses it again is anonymous.

Pseudonymous employees in the workplace.

The emergence of Web3 technology has created a new landscape for employment and has given rise to the concept of pseudonymous employees. 

Web3 technology is a decentralized and distributed network that provides users with more control over their data, privacy, and identity. This new technology has created a platform for pseudonymous employees to work and earn income while maintaining their pseudonymity.

Pseudonymous employees are individuals who work under a pseudonym or a false name, and use of an avatar to conceal facial identity.

This concept is possible because of the decentralized nature of the Web3 space. Pseudonymous employees can leverage blockchain technology to work for decentralized organizations or projects, allowing them to work and earn income without disclosing their true identity.

One of the key benefits of the Web3 space for pseudonymous employees is the ability to work and earn income without fear of retribution or discrimination.

Traditional employment models often require employees to disclose their personal information, including their real name, address, and other sensitive information. This information can be used against employees, leading to discrimination, harassment, or retaliation. In the Web3 space, pseudonymous employees can work without disclosing their true identity, eliminating the risk of discrimination or retaliation.

The Web3 space also provides a platform for pseudonymous employees to work on projects that align with their values and interests.

Decentralized organizations and projects are often driven by a shared vision and values, which allows pseudonymous employees to work on projects that are meaningful to them. This can lead to greater job satisfaction and fulfillment.

Legal Implications surrounding the employment of Pseudonymous characters.

With the Web3 space still evolving, the concept of Pseudonymous workers is relatively new and there exist no specific regulation introduced to protect such people, however there exist certain legal considerations and regulations that may be applied considering the jurisdiction and specific terms of the employment agreement which the courts will be guided by in the event of conflict between the employee and a pseudonymous employee.

Here are some general legal considerations that ought to be applied to pseudonymous employees;

  • Labour Law; Pseudonymous employees ought to be protected by relevant international and municipal Labour laws. Pseudonymous persons should not be discriminated in the work place and rights such as minimum wage, working hours regulation should be enforced.
  • Tax Laws; Pseudonymous employees ought to be subject to relevant tax laws. Web3 Startups registered as a Limited Liability Company (LLC) pays tax, so also will their employees.
  • Data Protection Laws; Employers may need to comply with data protection laws when collecting, storing, and processing personal data of pseudonymous employees, even if their identities are not known and in the eventuality that personal information is provided to the employer out of necessity, the Employer ought to keep the information private.
  • Intellectual property laws; Employers may need to ensure that they have appropriate intellectual property ownership rights and licenses for work created by pseudonymous employees, particularly if the work involves copyrighted or patented materials.

Legal Regulatory Concerns.

Regulatory issues for pseudonymous employees can arise when there is a need to verify their identity for compliance purposes, such as anti-money laundering (AML) or know-your-customer (KYC) regulations. In some jurisdictions, companies may be required to collect and verify personal information of employees, which can conflict with the desire for anonymity. 

Additionally, pseudonymous employees may face challenges accessing certain benefits, such as healthcare or social security, that are tied to personal identification.

There exists a lot of grey areas and question marks surrounding the concept of Pseudonymous workers and understandably so.

As the Web3 space continues to evolve, it will be interesting to see how the concept of pseudonymous employees will continue to shape the future of work.

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