The Ras Al Khaimah Digital Assets Oasis (RAK DAO), a free economic zone in the United Arab Emirates focused on digital assets, will introduce a legal framework for decentralized autonomous organizations (DAOs).
In an announcement sent to Cointelegraph, law firm NeosLegal and RAK DAO stated that the new regime would be discussed at the DAO Legal Clinic on October 25. They aim to clarify how DAOs can remain legally compliant, impacting decentralized governance and the Web3 ecosystem in the UAE.
RAK DAO’s announcement highlighted that the new framework would address legal and governance requirements for DAOs, including establishing a legal structure. It will clarify tax obligations, enable proprietary ownership of assets, and provide legal protection for founders, members, and contributors.
Under the new regime, DAOs can be registered in the UAE remotely without physically being in the country, as stated by Irina Heaver from NeosLegal. This accessibility allows global participants to engage in the UAE’s growing virtual assets sector. The legal framework aims to position the UAE as a hub for blockchain innovation, attracting entrepreneurs and developers.
While Switzerland also allows DAO legal wrappers, setting up a legal DAO wrapper in the UAE is more cost-effective. The process in Switzerland could cost up to $46,000, while in the UAE, it could start at $3,000. This affordability enables even small DAOs to operate within a legal framework and protect themselves.
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