Ras Al Khaimah Digital Assets Oasis (RAK DAO), a free economic zone in the UAE, introduces a comprehensive legal framework for decentralized autonomous organizations (DAOs), aiming to define tax responsibilities and provide benefits for DAOs, while enabling them to own property in the UAE without requiring a physical presence.

Tax Clarity and Benefits for DAOs

A key feature of the new legal framework is the clarification of tax obligations and benefits for DAOs. As decentralized entities, DAOs often face regulatory uncertainty. The legal structure introduced by RAK DAO aims to resolve these ambiguities by providing clear guidelines on compliance with tax laws.

Property Ownership and DAO Registration

The legal framework will enable DAOs to own both digital and physical assets within the UAE. This is significant as many jurisdictions lack clear legal frameworks for DAO property rights. Additionally, DAOs will be able to register in the UAE without a physical presence and open local bank accounts.

UAE’s Role in the Blockchain Industry

RAK DAO is at the forefront of innovation in digital assets and blockchain technology. Through these efforts, the UAE positions itself as a global leader in blockchain and digital assets, creating favorable regulatory conditions for blockchain projects. The introduction is expected to attract numerous decentralized organizations.

The initiative by RAK DAO to implement a legal framework for DAOs will reinforce the UAE’s position as a leader in the blockchain industry, providing decentralized organizations with a secure and business-friendly environment to operate in the digital economy.