Israeli Government Forms Special Team and Seeks Public Input on DAO Regulation

cryptonews.com:

The Israeli government has established a special examination team tasked with regulating decentralized governance organizations (DAOs). 

In an official announcement, the country revealed that the team, led by the Chief Economist at the Ministry of Finance and the Head of the Corporations and Capital Market Cluster at the Ministry of Justice, will explore the uses and types of activities carried out by DAOs.

The team's primary objective is to assess the use of crypto tokens within DAOs and evaluate the associated risks.

By doing so, they aim to develop a regulatory framework that strikes a balance between fostering innovation and safeguarding the interests of stakeholders.

“The team examines the required regulation, including regarding the corporate status, the taxation aspects and other aspects of DAO in order to create legal certainty, reduce the risk factors in the activity through DAO and realize the potential for the Israeli economy,” the announcement read. 

The Israeli government will also seek public input on DAO regulations. The consultation period will continue until September.

DAOs are entities that utilize blockchain technology and native crypto tokens to enable stakeholders to participate in decision-making processes. 

This latest move by the Israeli government is part of a broader effort to establish robust regulations for the crypto industry. 

Lawmakers in the country have recently shown support for axing capital gains taxes for foreign crypto investors, a measure intended to attract international investments.

Earlier this month, a bill granting the exemption from capital gains taxes on the sale of digital currencies for foreign residents in Israel and other tax benefits passed through a preliminary reading in the