As a seasoned analyst with extensive experience in the digital assets and blockchain space, I find the recent development by Ras Al Khaimah Digital Assets Oasis (RAK DAO) highly intriguing. The introduction of a legal framework for decentralized autonomous organizations (DAOs) is a significant step towards establishing clear guidelines for this innovative concept.
In simple terms, the Ras Al Khaimah Digital Asset Oasis (RAK DAO) – a region within the United Arab Emirates dedicated to digital assets – plans to establish a legal system specifically designed for Decentralized Autonomous Organizations (DAOs).
Law firm NeosLegal and RAK DAO have announced that they will present a new legal regime during the DAO Legal Clinic scheduled for October 25th at CryptoMoon.
As an analyst, I’m sharing insights from Irina Heaver, a partner at NeosLegal, who recently discussed with CryptoMoon her expectations about a forthcoming framework that aims to provide clarity on how Decentralized Autonomous Organizations (DAOs) can operate within legal boundaries. This clarification, according to Heaver, is likely to have a substantial impact on the governance of decentralized systems and the broader Web3 landscape in the United Arab Emirates.
Legal wrapper for DAOs
The recent statement by RAK DAO highlighted that their new system is designed to tackle legal and administrative aspects of Decentralized Autonomous Organizations (DAOs), including defining a suitable legal structure.
The announcement highlighted that the legal structure will clarify tax obligations and benefits. It will also enable property ownership of onchain and offchain assets and provide legal protection from personal liability for a DAO’s founders, members and contributors.
The free zone clarified that this legal structure will empower Decentralized Autonomous Organizations (DAOs) to engage in enforceable agreements and set rules for addressing both internal conflicts and disagreements with outside parties.
Remote establishment of DAOs in the UAE
Heaver told CryptoMoon that DAOs can be registered in the UAE under the new regime without physically being in the country. Heaver explained that DAOs can be “established remotely” without a physical presence in the UAE.
The legal expert on cryptocurrencies based in the UAE stated that these organizations can manage bank accounts remotely, which facilitates greater involvement of international participants in the rapidly growing digital asset industry within the UAE, as noted by Heaver.
Heaver believes introducing the legal framework would continue to establish the UAE’s position as a global hub for blockchain and digital asset innovation, attracting entrepreneurs and developers.
In simple terms, it’s possible to create legal wrappers for Decentralized Autonomous Organizations (DAOs) in Switzerland. Although there are no specific laws for DAOs in Switzerland, they can still be established within their jurisdiction using a legal structure that envelopes the decentralized organization.
In simpler terms, the lawyer based in the United Arab Emirates shared with CryptoMoon that it would be significantly less expensive to create a legal framework for a Decentralized Autonomous Organization (DAO) within the UAE compared to Switzerland. The lawyer mentioned that setting up a DAO in Switzerland could cost as much as $46,000, but starting the process in the UAE might only require around $3,000.
Heaver noted that this cost-effectiveness enables even the tiniest Decentralized Autonomous Organizations (DAO) to secure their interests and function legally.
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2024-10-18 11:40