DAOs are taking off in the United Arab Emirates! Ras Al-Khaimah unveils an innovative legal framework offering unprecedented tax and legal advantages. A promising new playground for these decentralized organizations…
In a significant step forward for the cryptocurrency ecosystem, the emirate of Ras Al-Khaimah in the United Arab Emirates has just launched a first-of-its-kind regulatory framework for decentralized autonomous organizations (DAOs). This pioneering initiative opens up exciting new prospects for these blockchain-based entities.
A tailor-made regime for DAOs
The new “DAO Association Regime” (DARe) set up by Ras Al-Khaimah offers DAOs a structured legal environment adapted to their specificities. Available within the RAK Digital Assets Oasis free zone dedicated to digital assets, this framework will allow these decentralized organizations to evolve in a clear and favorable regulatory context.
The establishment of DARe marks a key milestone in our ambition to become a global hub for the blockchain ecosystem and digital assets.
explains Luc Froehlich, commercial director of RAK DAO
Thanks to this tailor-made legal infrastructure, DAOs will be able to interact more easily with the world outside the blockchain, such as opening a bank account or holding both digital and physical assets. A major step forward to streamline the operations of these innovative organizations.
Tax optimization and legal clarity
In addition to a robust legal framework, the Ras Al-Khaimah DARe regime will provide DAOs with tax advantages significant as well as legal clarity Welcome. Strong assets to attract these growing organizations.
This new regime will allow DAOs to benefit from tax optimization and legal certainty essential for their development.
emphasizes Dr Sameer Al Ansari, CEO of RAK DAO
To adapt to the different DAO profiles, two models are planned: one intended for emerging projects with fewer than 100 members, the other adapted to more mature DAOs with cash flow exceeding $1 million. Welcome flexibility to meet the varied needs of these organizations.
The Emirates, playground of DAOs
With this innovative framework, Ras Al-Khaimah confirms the avant-garde positioning of the United Arab Emirates in the world of crypto-assets. The country is multiplying initiatives to become a benchmark blockchain hub and attract the most innovative players in the sector.
At the beginning of the year, the region launched a ambitious strategy for the development of digital assets and metaverses. Objective: to make the Emirates a world leader in these promising areas.
For its part, Dubai recently finalized its regulatory framework for virtual assetscovering a broad spectrum of activities such as token issuances, NFTs, etc. Here again with a clear ambition: to become a stronghold for cryptocurrencies by offering a secure regulatory environment conducive to innovation.
With this new tailor-made regime, DAOs now have an additional reason to establish themselves in the United Arab Emirates. Ras Al-Khaimah offers them an attractive legal framework, designed to serve their interests and support their development. An initiative which should quickly bear fruit and attract numerous projects to the region.
As DAOs become increasingly important, having them at your side becomes a strategic issue for any blockchain ecosystem that wants to count. The Emirates have understood this well and are positioning themselves, with this pioneering framework, as a particularly welcoming and dynamic hub for these new kinds of organizations. To follow closely!
