UAE’s thriving emirate, Abu Dhabi, has finally gone ahead with introducing a regulatory framework for decentralized autonomous organizations (DAOs) to operate legally. This historic event is the Middle East’s first significant push towards regulating DAOs. It has shattered the conventional legal gray area DAO’s once resided in the sector
Distributed ledger technology (DLT) is central to this regulatory shift and is the backbone of blockchain networks. DLT ensures data accuracy and security by recording and storing information on a network of interconnected ledgers.
A change in Abu Dhabi’s Crypto landscape
The Registration Authority of Abu Dhabi Global Market (ADGM) proudly announced the dawn of this transformative era. They stressed on the immediate effectiveness of the newly launched framework.
It will allow DAOs to issue tokens to their members. This will provide newfound legitimacy to such entities that have long operated in the digital shadows.
This regulatory move is part of Abu Dhabi’s broader vision to foster blockchain and digital asset investment. It wants to tag along with Dubai to become a leading crypto hub within the UAE.
By transforming the blockchain and Web3 landscape, we are moving towards a future characterized by setting global benchmarks with enhanced transparency and efficiency
ADGM Chairman Ahmed Jasim Al Zaabi
A backstory of this legislation
The ADGM’s Registration Authority proposed the “DLT Foundations Regulations 2023“ in April 2023. The legislation encompasses reporting, disclosures, publication, insolvency and liquidation measures. It offers a detailed solution for DLT and crypto firms in the UAE.
This latest endeavor by the ADGM underscores the emirate’s support and will for innovation and regulatory clarity for the crypto sector. It is a stark contrast to the many other countries of the world where they are still indecisive of crypto policies