The United Arab Emirates (UAE) has rolled out a new legal framework for Decentralized Autonomous Organizations (DAOs) through the RAK Digital Assets Oasis, known as RAK DAO. This move shows RAK DAO's commitment to creating a space where decentralized organizations can thrive.
With this framework, the UAE aims to strengthen its position as a global hub for web3 innovation. The country is supporting crypto-friendly policies that encourage growth.
RAK DAO has launched the DAO Association Regime, or DARe. This framework offers two models: the Startup DAO and the Alpha DAO. The Startup DAO model is designed for new projects with fewer than 100 members. It simplifies regulatory processes, allowing these emerging ventures to focus on growth.
On the other hand, the Alpha DAO model is aimed at more established DAOs that have treasuries over $1 million. It provides the necessary support for these organizations to scale effectively.
Dr. Sameer Al Ansari, CEO of RAK DAO, highlighted the significance of this new regime. He pointed out key features, like offering a separate legal identity and limited liability for founders and members. Luc Froehlich, the Chief Commercial Officer of RAK DAO, echoed these sentiments. He said, “The introduction of DARe is a step forward in our journey to build a global hub for the blockchain and digital assets ecosystem. This structured legal framework helps DAOs interact with the off-chain world, such as opening bank accounts and owning assets.”
This development, along with clear legal guidelines and tax benefits, shows the UAE’s and RAK DAO’s commitment to embracing new technologies and nurturing the blockchain ecosystem.
As the global digital asset landscape grows, the DARe framework positions the UAE as a prime destination for crypto ventures. The regulatory clarity and support it offers could attract startups and set a new standard for other regions.
In contrast, while the UAE is advancing its regulatory frameworks, Italy has recently made headlines for its capital gains tax on cryptocurrencies. This tax could discourage investment in the digital asset sector. Italy’s focus on taxing rather than fostering innovation is a stark contrast to the UAE’s proactive approach.
In the UAE, the emphasis is on attracting and nurturing blockchain companies. Meanwhile, Italy’s tax policies may complicate the environment for digital asset firms, potentially leading to capital flight.
Recent changes from Dubai’s Virtual Asset Regulatory Authority (VARA) further highlight the UAE’s commitment to creating a favorable regulatory environment for virtual assets. These changes are expected to enhance the operational frameworks for digital asset companies, reinforcing the UAE’s goal of becoming a global leader in blockchain innovation.