The Marshall Islands has taken a significant step towards becoming a central hub for decentralized autonomous organizations (DAOs) by enhancing its legislation to recognize DAOs as legal entities. Last week, the parliament of the Republic of the Marshall Islands amended the Decentralized Autonomous Organization Act of 2023, which was spearheaded by Member of Parliament David Paul and Adam Miller, CEO & Co-Founder of MIDAO. This amendment aims to boost the legal status of DAOs and positions the Marshall Islands as a leader in the regulation of DAOs globally.
MIDAO, a public-private partnership between the Marshall Islands and MIDAO Directory Services, serves as the registrar’s office extension for DAOs and Web 3. Adam Miller claims that the updated Act is the most comprehensive law for DAOs worldwide, providing a blueprint for DAO regulations. Since recognizing DAOs as legal entities in 2022, the Marshall Islands has incorporated nearly 100 DAOs under its original act of 2021.
The revised law offers several benefits for DAOs, including faster registration times capped at 30 days (previously 30–60 days), and immunity for DAOs from being held accountable for the use of any open-source software they create. Additionally, most governance tokens will not be classified as securities unless they offer economic rights beyond potential financial gain.
To establish a DAO in the Marshall Islands, one must visit MIDAO.org and hire MIDAO as a registered agent. The Act also legitimizes Series DAO LLCs, which are often used to segregate assets and liabilities in sub-DAO structures.
The unique status of the Marshall Islands allows it to make these advancements without being subject to U.S. federal laws, while still maintaining access to U.S. services such as the U.S. Postal Services, Federal Aviation Administration (FAA), and the U.S Military.
For more details, you can visit the original article on Binance: Marshall Islands Enhances Legislation to Boost DAOs Legal Status, Accelerates Registration and Provides Immunity.
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