In the United Arab Emirates, the Ras Al-Khaimah region has introduced a novel framework for decentralized autonomous organizations within its digital assets free zone. These blockchain-based entities are governed by code and will now operate under the DAO Association Regime, a tailored legal framework.
The regime will be implemented in the RAK Digital Assets Oasis, a designated free zone for digital asset companies. According to Luc Froehlich, Chief Commercial Officer of RAK DAO, this move is a significant step towards establishing a global hub for the blockchain and digital assets ecosystem. The regime enables DAOs to engage with the traditional world, such as opening bank accounts and owning both digital and traditional assets. Dr.
Sameer Al Ansari, CEO of RAK DAO, noted that the regime will offer tax optimization and legal clarity for DAOs. The framework includes two models: one for emerging projects with less than 100 members and another for established DAOs with treasuries exceeding $1 million.