UAE Digital Assets Oasis Welcomes DAOs with New Regulatory Framework
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
The Ras Al-Khaimah (RAK) region in the United Arab Emirates (UAE) has launched a comprehensive regulatory framework specifically tailored for decentralized autonomous organizations (DAOs).
The newly introduced DAO Association Regime (DARe) provides DAOs with the legal infrastructure to operate within the region’s RAK Digital Assets Oasis free zone.
This framework allows DAOs to interact with off-chain entities, such as opening bank accounts and owning on-chain and off-chain assets, while ensuring a secure, legally compliant environment for decentralized operations.
One of the most significant aspects of the DAO Association Regime is its provision of a structured legal framework, which has been a critical issue for DAOs operating in decentralized ecosystems.
DAOs, governed by smart contracts rather than traditional hierarchical structures, often face challenges when attempting to interface with real-world financial systems.
These challenges stem from a lack of legal recognition, limiting their ability to engage with traditional banking institutions or hold assets outside the blockchain.
But with the launch of DARe, RAK Digital Assets Oasis is addressing these limitations, enabling DAOs to operate with the same legal and financial privileges as traditional organizations.
In addition to offering DAOs the ability to open bank accounts, the new regulatory framework allows these blockchain organizations to own both on-chain and off-chain assets.
This is a significant development, as it removes barriers that have historically restricted DAOs
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