Republic of Marshall Island recognizes DAOs as legal entities with new law
The Republic of the Marshall Islands (RMI) has endorsed and legally signed into law the Decentralized Autonomous Organization (DAO) Act of 2022. This move implies that DAOs are now legally recognized as domestic limited liability companies in the country and cover the exploration of decentralized ledger technologies. Additionally, MIDAO would facilitate the DAO Registry Process in the country.
MIDAO is a registered agency in Marshall Island that protects DAOs and their contributors by providing easy incorporation processes.
The country has a history of shipping registration and compliance. The RMI former Chief Secretary and Co-founder of MIDAO said that “decentralized autonomous organizations present an enormous opportunity for people to organize in a more efficient and less hierarchical manner. We in the Marshall Islands recognize this unique moment to lead in this critical space.”
Adam Miller, CEO of MIDAO, mentioned that the FTX event wouldn’t have happened if the exchange was running on a DAO structure.
The Republic of the Marshall Islands and its government recognizes the benefits accompanied by decentralization and is of the opinion that a ‘one-size-fits-all’ approach will not work in this sector.
“With this adoption of the DAO Act of 2022, The Marshall Islands commits its courts and its resources to the burgeoning world of decentralization and recognizes the unique place that decentralized autonomous organizations can hold not just in the blockchain space, but in the broader economy as well,” Minister Bransen Wase, RMI finance minister said.
The DAO Act of 2022 in the RMI legally accomplishes that profit DAOs and non-profit DAOs can register, and DAOs can incorporate under the internationally recognized LLC structure, however, must identify as a DAO LLC. DAO governance, its framework, tokenization, and voting processes are duly recognized. Also, the RMI government can create an investment fund that carters for education and training around DAOs.
Moreso, the Act defines DAO formation, agreements, and use of smart contracts and covers its regulation in the country.
Regulate centralized, not decentralized crypto – Coinbase CEO
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