Ras Al-Khaimah (RAK), a region in the United Arab Emirates (UAE), has taken a significant step towards embracing blockchain technology by launching a new framework for decentralized autonomous organizations (DAO) in its free zone for digital assets. DAOs are innovative entities governed by code and operate on blockchain technology.
The DAO Association Regime (DARe) was introduced in an effort to provide a structured legal framework tailored specifically for decentralized autonomous organizations. This development was announced via an emailed press release on Tuesday. The DARe framework will be implemented in the RAK Digital Assets Oasis, a free zone dedicated to digital assets companies.
Luc Froehlich, the chief commercial officer of RAK DAO, expressed his enthusiasm for the introduction of DARe, stating that it marks a significant milestone in establishing RAK as a global hub for the blockchain and digital assets ecosystem. By offering a structured legal framework, DAOs will now be able to engage with traditional financial institutions, such as opening bank accounts and holding both on-chain and off-chain assets.
Moreover, Dr. Sameer Al Ansari, CEO of RAK DAO, highlighted the benefits that the DARe regime will bring to DAOs, including tax optimization and legal clarity. The framework will consist of two models, catering to both emerging projects with fewer than 100 members and more established DAOs with treasuries exceeding $1 million.
This initiative reflects RAK’s commitment to embracing innovation and technology within its business ecosystem. By providing a supportive legal framework for DAOs, RAK aims to attract and nurture blockchain-based enterprises, fostering growth and development in the digital assets industry.
In a rapidly evolving digital landscape, the launch of the DARe framework positions RAK as a forward-thinking jurisdiction that is proactively adapting to the changing needs of the blockchain and digital assets sector. As blockchain technology continues to revolutionize various industries, RAK’s proactive approach sets a positive example for other regions looking to capitalize on the opportunities presented by decentralized autonomous organizations.