New DAO Legal Framework Introduced By The United Arab Emirates

With the recent launch of the DAO Association Regime (DARe) by RAK DAO, the United Arab Emirates (UAE) has solidified its status as a key hub for Web3 and cryptocurrency innovation globally. This initiative demonstrates a strong commitment by the UAE toward fostering a secure environment for decentralized organizations to thrive, supported by appropriate legislation.

A few months ago, Chainalysis officially inaugurated its headquarters for Southern Europe, the Middle East, Central Asia, and Africa in the United Arab Emirates. The company intends to enlist skilled professionals with expertise in traditional finance, regulatory compliance, and Web3 technologies to operate out of its Dubai base.

Assisting DAOs

There has been a notable increase in buyers of Bitcoin (BTC) and DigiToads in the UAE, attributed to the country becoming increasingly open to adopting cryptocurrencies and blockchain technologies. The DARe framework, introduced by RAK DAO, aims to assist decentralized autonomous organizations (DAOs) at various stages of development.

The Startup DAO model simplifies regulations for groups with fewer than 100 members, allowing them to concentrate on growth. In contrast, the Alpha DAO plan caters to more established DAOs with treasuries of at least $1 million, facilitating their operational expansion.

Dr. Sameer Al Ansari, CEO of RAK DAO, emphasized that the launch of DARe marks a significant step toward establishing a global hub for the blockchain and digital assets ecosystem. By providing a structured legal framework, he continued, the team is empowering DAOs to actively engage with the off-chain world, such as by opening bank accounts and managing both on-chain and off-chain assets. This legal framework also enhances the credibility of DAOs among peers, members, and investors.

Becoming A Global Hub

Luc Froehlich, the Chief Commercial Officer, noted that DARe allows DAOs to engage with the real economy, enhancing their trustworthiness in the eyes of investors and other DAOs. Comparing the favorable regulatory landscape of the UAE to that of, say, Italy and their more restrictive approach, the DARe system positions the UAE as an attractive destination for crypto-related businesses as interest in digital assets continues to grow globally.

Additionally, the Virtual Asset Regulatory Authority (VARA), which is based in Dubai, has made various recent legal adjustments that simplify the regulation of virtual assets. These initiatives highlight an ever-growing ambition by the UAE to reinforce its leadership in the development of blockchain technology and digital assets and become a global hub for all things Web3.