UAE to launch new legal framework for DAOs
The framework outlines clear tax obligations, allows for ownership of onchain and offchain assets, and provides guidelines for legally binding contracts and dispute resolution.
The Ras Al Khaimah Digital Assets Oasis (RAK DAO) in the UAE is preparing to launch a new legal framework for decentralised autonomous organisations (DAOs), marking a significant step in enhancing the country’s digital asset sector. The framework, set to be discussed on 25 October, aims to clarify how DAOs can remain compliant with legal and governance requirements while providing protections for founders and members.
DAOs in the UAE will benefit from clear tax obligations and will be able to own both onchain and offchain assets. Additionally, the framework offers the ability to engage in legally binding contracts, as well as guidance on resolving disputes. The new structure is expected to attract global participants, as DAOs can be established remotely without the need for a physical presence in the UAE.
The UAE’s approach offers a cost-effective alternative to Switzerland, where setting up a DAO can cost up to $46,000. In comparison, the UAE’s framework starts at just $3,000, making it accessible to even smaller DAOs.
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