Ras Al-Khaimah (RAK), a region in the United Arab Emirates, has established a legal framework for decentralized autonomous organizations (DAOs) within its digital assets free zone.
The new initiative, dubbed the DAO Association Regime (DARe), aims to provide legal clarity and structure for blockchain-based organizations.
The framework, announced Tuesday through an official press release, marks a major step in RAK’s efforts to position itself as a global hub for digital assets and blockchain technology. This development takes place within the RAK Digital Assets Oasis, the region’s dedicated free zone for digital asset companies.
Two-Tier System for DAO Development
Advertisement
The DARe framework introduces a dual-model approach to accommodate DAOs at different stages of growth. The first one is an entry-level framework for emerging projects with fewer than 100 members.
The second is a comprehensive structure for mature DAOs managing treasuries exceeding $1 million
Luc Froehlich, chief commercial officer of RAK DAO, emphasized the framework’s practical implications: “By offering a structured legal framework, we enable DAOs to interact with the off-chain world, such as opening a bank account and owning both on- and off-chain assets.”
Dr. Sameer Al Ansari, CEO of RAK DAO, highlighted the regime’s benefits, noting that organizations operating under this framework will enjoy tax optimization advantages alongside legal clarity.
Advertisement
This initiative represents RAK’s latest move to establish itself as a competitive jurisdiction for blockchain and digital asset companies. The framework addresses key challenges faced by DAOs, particularly their interaction with traditional financial and legal systems.
