UAE Plans New Rules to Regulate Decentralized Organizations

A free zone in the UAE specializing in digital assets, is set to roll out a new legal framework aimed at decentralized autonomous organizations (DAOs).

The plan will be introduced at the DAO Legal Clinic on October 25, where details about compliance and legal standards will be discussed, as announced by the Ras Al Khaimah Digital Assets Oasis (RAK DAO) and NeosLegal.

According to Irina Heaver from NeosLegal, the initiative seeks to provide clarity for DAOs on legal obligations, taxation, asset ownership, and governance.

The framework will also protect founders and contributors from personal liability, allowing DAOs to establish contracts and resolve disputes more effectively.

One key feature is the ability for DAOs to be set up remotely in the UAE, making it easier for international participants to engage with the country’s growing digital asset space.

Compared to Switzerland’s higher setup costs, the UAE offers a more budget-friendly option for establishing legal protections, starting at approximately $3,000.