Ras Al-Khaimah Introduces Legal Framework for Blockchain Organizations
Ras Al-Khaimah in the UAE has launched a new framework enhancing the legal status of decentralized autonomous organizations (DAOs) in its free zone.
Ras Al-Khaimah (RAK), a region in the United Arab Emirates (UAE), has recently established a new framework to support decentralized autonomous organizations (DAOs) within its free zone designed for digital assets.
The DAO Association Regime (DARe) introduces a structured legal framework tailored for these organizations, allowing for significant advancements in tax optimization and clarity.
"The introduction of DARe represents a stepping stone in our journey towards building a global hub for the blockchain and digital assets ecosystem," said Luc Froehlich, Chief Commercial Officer of RAK DAO. "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 framework consists of two models: one designed for emerging projects with fewer than 100 members, and another for well-established DAOs boasting treasuries exceeding $1 million.
"The regime will enable DAOs to have tax optimization and legal clarity," added Dr. Sameer Al Ansari, CEO of RAK DAO.
Read more about Marshall Islands Further Strengthen’s Law That Made DAOs Legal Entities.
