There’s an important step that has been taken by the Republic of the Marshall Islands. Check out the following reports about DAOs below.
It seems that the Republic of the Marshall Islands is legally recognizing DAOs and allowing their adoption.
In a world-first, the Republic of the Marshall Islands announced today that the government has passed into law the Decentralized Autonomous Organizations Act of 2022, which legally recognizes DAOs and enables legal entities to formally adopt DAO structures and governance tools.
— Wu Blockchain (@WuBlockchain) December 22, 2022
Someone commented: “Interesting development. I wonder how liability protection works for founders under this regime compared to anon DAOs, purely onchain and not registered in any jurisdictions.”
Accoridng to official data, this development marks the furthest any country has gone in legalizing and encouraging the growth of decentralized entities and their associated elements. This represents a unique opportunity for MIDAO’s facilitation of DAO Registry Process in the Marshall Islands.
The historic announcement comes amid growing calls for governments to introduce more regulatory oversight and scrutiny of blockchain and crypto.
Just to refresh your memory, this comes right following the collapse of the FTX centralized crypto exchange.
Many governments have announced plans for new legislation and beefed up enforcement from financial watchdog institutions.
The government of the Republic of the Marshall Islands recognizes that a ‘one-size-fits-all’ approach will not work in this sector, and recognizes the benefits that decentralization can bring to its economy.
“The Republic of the Marshall Islands is proud to be at the forefront of tech jurisprudence and compliance globally. With this adoption of the DAO Act of 2022, The Marshall Islands commits its courts and its resources to the burgeoning world of decentralization and recognizes the unique place that decentralized autonomous organizations can hold not just in the blockchain space, but in the broader economy as well,” said RMI Finance Minister Bransen Wase.
He continued and said: “We believe that our island nation is well-suited based on our history of shipping registration and compliance to take this step forward and offer DAOs a place to domicile easily, efficiently, and in a cost-effective manner.”