Ras Al Khaimah Digital Assets Oasis (RAK DAO), a digital asset-focused free economic zone in the United Arab Emirates, will launch a legal framework for decentralized autonomous organizations (DAOs) and will discuss the framework on October 25, Cointelegraph reported.
Irina Heaver, partner at NeosLegal, said the framework will clarify how DAOs can remain legally compliant and have a significant impact on decentralized governance and the Web3 ecosystem.
RAK DAO said the new framework will address the legal and governance requirements of DAOs, including establishing a legal structure, clarifying tax obligations and benefits, allowing ownership of on-chain and off-chain assets, and providing legal protection for founders, members, and contributors.
Heaver also mentioned that DAOs can be registered remotely and open bank accounts without a physical presence, which will attract global players to join the UAE’s virtual asset sector.
Heaver believes that the framework will continue to solidify the UAE’s position as a global hub for blockchain and digital asset innovation. In comparison, setting up a DAO in Switzerland can cost up to $46,000, while in the UAE it only costs $3,000.
