Republic of the Marshall Islands, situated in the Pacific Ocean close to Equator, has made the announcement that the Decentralised Autonomous Organisations Act of 2022 has received approval to be converted into law, as reported by Cointelegraph.
According to Cointelegraph, the law gives recognition to decentralised autonomous organisations (DAOs) and permits the country’s legal units to ensure formal adoption of DAO structures and governance tools. It is believed that the government hopes for growth of decentralised entities and related factors within the state.
On the basis of information by Cointelegraph, the DAO Act of 2022 will allow DAOs to be identified as limited liability companies (LLCs). Reportedly, the act will permit both for-profit DAOs and non-profit DAOs to register while providing definitions and regulations for DAO development, agreements and smart contracts’ usage.
“With this adoption of the DAO Act of 2022, The Marshall Islands commits its courts and its resources to the burgeoning world of decentralisation, and recognizes the unique place that decentralised autonomous organisations can hold not just in the blockchain space, but in the broader economy as well,” Bransen Wase, finance minister, Republic of the Marshall Islands, stated.
Moreover, Cointelegraph noted that in February, 2022, Marshall Islands gave recognition to DAOs as legal platforms. Reportedly, in the last couple of years, Marshall Islands has been looking at digital asset-based use cases, with the government deploying measures to create blockchain-oriented cryptocurrency called Sovereign (SOV).
(With insights from Cointelegraph)