A DAO is a group that operates without a traditional management structure, relying instead on smart contracts and community decision-making.
Irina Heaver, a lawyer from NeosLegal, explained that this new framework will allow even smaller DAOs to operate legally in the UAE.
What is the RAK DAO?
The Ras Al Khaimah Digital Assets Oasis (RAK DAO) is a special economic zone in the UAE. It focuses on digital assets. They are set to introduce this legal framework at an event called the DAO Legal Clinic on October 25th. During this event, people will discuss how DAOs can follow the law and what it means for the future of decentralized governance in the UAE.
The new framework will help clarify the legal and governance requirements for DAOs. It will explain tax obligations and benefits, allowing DAOs to own both digital and physical assets. This means that the founders, members, and contributors of a DAO will have legal protection from personal liability. This means that they won’t have to worry about losing their money if something goes wrong.
UAE’s total value received by DeFi services soared 74% from last year. In the latest episode of Public Key, @ianandrewsdc explores the ADGM’s blueprint for decentralization and the world’s first framework for blockchain foundations, DAOs and web3 entities with Dmitry Fedotov. pic.twitter.com/KZXroleaBv
— Chainalysis (@chainalysis) October 9, 2024
Additionally, the legal framework will enable DAOs to enter legally binding contracts and set rules for resolving disputes. Heaver mentioned that DAOs can register in the UAE even if they aren’t physically located there. This means that organizations can be established remotely, making it easier for people from all over the world to participate in the UAE’s growing digital assets market.
A Global Hub for Innovation
Heaver believes this legal framework will help the UAE become a global hub for blockchain and digital asset innovation. With the new rules in place, more entrepreneurs and developers will be attracted to the area.
Compared to Switzerland, where setting up a DAO can cost as much as $46,000, establishing a DAO in the UAE can start at just $3,000. This affordability allows even the smallest DAOs to protect themselves and operate within a legal framework, making it a “no-brainer” for many.
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This articles is written by : Fady Askharoun Samy Askharoun
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