In a statement, the Republic of the Marshall Islands said it will allow decentralized autonomous organizations (DAOs) to become legal organizations. At the time of this writing, only one DAO has been able to set up shop in the country.
DAOs will soon be able to register as legal entities.
There is a country in the world called the Republic of the Marshall Islands (RMI). It says that decentralized autonomous organizations (DAOs) can be legal entities. Move: The Non-Profit Entities (Amendment) Act 2021 has just been signed into law. This means that DAOs can now be “recognized by the international legal system.”
According to a recent press release, the Marshall Islands already has a company called MIDAO Directory Services Inc. that helps DAOs register as legal entities in the country. In a press release, Shipyard Software’s Admiralty LLC was incorporated, and MIDAO helped make that happen. Admiralty LLC builds “decentralized exchanges for specific types of trades, traders, and instruments.”
Media releases point out that the RMI has a good record when it comes to regulatory compliance. This is why the country decided to recognize DAOs.
“The RMI’s record of regulatory compliance and fair legal adjudication is well-known around the world, and the country is well-positioned to become the world’s top home for DAOs,” said the media statement.
De Facto Choice for DAOs
It is trying to become “the de facto choice for DAOs who want to legally register their organization.” This is like the US state of Delaware, which “has become synonymous with incorporation” in that country.
It also quotes Bobby Muller, the president and co-founder of MIDAO, who says that DAOs “present an enormous opportunity for people to organize in a more efficient and less hierarchical way.” A DAO is a type of computer that runs on its own, and the island nation sees this as a “unique opportunity to lead in this important space.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.