- The UAE’s new DAO legal framework (DARe) enhances credibility for decentralized organizations, making it easier for DAOs to interact with the traditional financial system.
- The UAE’s crypto-friendly stance and favorable regulations position it as a global leader in blockchain innovation, attracting both emerging and mature DAOs.
The UAE continues to strengthen its position as a global hub for Web3 and crypto innovation with the recent introduction of RAK DAO’s DAO Association Regime (DARe). This initiative underscores the country’s commitment to fostering an environment where decentralized organizations can thrive, supported by crypto-friendly policies.
As a crypto-friendly nation, the UAE has seen a boost in Bitcoin and DigiToads investors, as recently updated by CNF. The current DARe framework, launched by RAK DAO, offers a tailored approach for different stages of decentralized autonomous organizations (DAOs).
The Startup DAO model supports organizations with fewer than 100 members, simplifying the regulatory process to focus on growth. On the other hand, the Alpha DAO model targets more mature DAOs with treasuries exceeding $1 million, offering support to scale operations. RAK DAO CEO Dr. Sameer Al Ansari emphasized that,
The introduction of DARe represents a stepping stone in our journey towards building a global hub for the blockchain and digital assets ecosystem. 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. This legal wrapper will also allow DAOs to signal and raise their credibility amongst peers, members, and investors.
Chief Commercial Officer Luc Froehlich highlighted how DARe allows DAOs to engage with the traditional off-chain world, such as opening bank accounts and owning assets, which enhances credibility among investors and peers.
UAE’s Favorable Regulatory Climate vs. Italy’s Restrictive Approach
As global interest in digital assets grows, the UAE’s DARe framework positions the country as a leading destination for crypto-related ventures. Dubai’s Virtual Asset Regulatory Authority (VARA) has also implemented recent legal changes, further enhancing the regulatory framework for virtual assets.
These efforts signal the UAE’s commitment to solidifying its role as a global leader in blockchain and digital asset development.
In addition, As CNF highlighted, Standard Chartered has launched UAE crypto custody services for Bitcoin. According to CoinMarketCap data, Bitcoin (BTC) is currently trading at $66,937.75, with a decrease of 0.56% in the past day and 0.29% in the past week.
