Ras Al-Khaimah (RAK), a region in the United Arab Emirates (UAE), launched a new framework for decentralized autonomous organizations (DAO) in its free zone for digital assets.
DAO’s are blockchain-based organizations that are governed by code. The DAO Association Regime (DARe) “introduces a structured legal framework designed specifically for decentralized autonomous organizations,” an emailed press release said on Tuesday. The regime will be available in the RAK Digital Assets Oasis, a free zone for digital assets companies.
“The introduction of DARe represents a stepping stone in our journey towards building a global hub for the blockchain and digital assets ecosystem,” Luc Froehlich, chief commercial officer of RAK DAO said in the statement. “By offering a structured legal framework, we enable DAOs to interact with the off-chain world, such as opening a bank account and owning both on- and off-chain assets.”
The regime will enable DAO’s to have tax optimization and legal clarity, Dr. Sameer Al Ansari, CEO of RAK DAO added in the statement. Plus, the regime will have two models, one for emerging projects with fewer than 100 members and another for more mature DAOs with treasuries that exceed $1 million.
