The UAE’s new DAO legal framework (DARe) increases the credibility of decentralized organizations and makes it easier for DAOs to interact with the traditional financial system. With its crypto-friendly attitude and favorable regulations, the UAE has established itself as a global leader in blockchain innovation, attracting both emerging and mature DAOs.
The UAE continues to strengthen its position as a global hub for Web3 and cryptographic innovation with the recent introduction of RAK DAO’s DAO Association Regime (DARe). This initiative underscores the country’s commitment to fostering an environment in which decentralized organizations can thrive, supported by cryptocurrency-friendly policies.
As a crypto-friendly country, the UAE is seeing an increase in investors in Bitcoin and DigiToads, as recently updated by CNF. The current DARe framework, initiated by RAK DAO, provides an approach tailored to different stages of decentralized autonomous organizations (DAOs).
The Startup DAO model supports organizations with fewer than 100 members and simplifies the regulatory process to focus on growth. The Alpha DAO model, on the other hand, targets more mature DAOs with more than $1 million in funding and supports scaling up operations. Dr. Samir Al Ansari, CEO of RAK DAO, emphasized:
The introduction of DARe is a stepping stone in our efforts to create a global hub for the blockchain and digital asset ecosystem. Providing a structured legal framework allows DAOs to interact with the off-chain world, such as opening bank accounts and owning both on-chain and off-chain assets. This legal wrapper also allows DAOs to send signals and increase credibility among peers, members, and investors.
Luc Fröhlich, Chief Commercial Officer, explained how DARe enables DAOs to connect with the traditional off-chain world, such as opening bank accounts and owning assets, and builds trust among investors and peers. Emphasis was placed on how things can be improved.
UAE’s favorable regulatory environment vs. Italy’s restrictive approach
Amid growing global interest in digital assets, the UAE’s DARe framework positions the country as a leading destination for crypto-related ventures. Dubai’s Virtual Assets Regulatory Authority (VARA) has also implemented recent legal reforms to further strengthen the regulatory framework for virtual assets.
These initiatives demonstrate the UAE’s commitment to solidifying its role as a global leader in blockchain and digital asset development.
Additionally, as highlighted by CNF, Standard Chartered has launched UAE crypto custody services for Bitcoin. Bitcoin (BTC) is currently trading at $66,937.75, down 0.56% over the past day and 0.29% over the past week, according to data from CoinMarketCap.
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