Marshall Islands further strengthens laws making DAO a legal entity

David Paul, a member of the Republic of Marshall Islands Parliament, and Adam Miller, CEO and co-founder of MIDAO, stated that the Marshall Islands Parliament passed legislation last week to further promote its already-perfected decentralized autonomous organization (DAO) laws. The original law stated that DAOs do not need a board of directors, do not require written or paper records if they are on the blockchain, and every member of the DAO, except for one person, can remain anonymous. Those who do not wish to remain anonymous do not need to be in the Marshall Islands but must provide detailed KYC information. The revised law strengthens the advantages of the original law by providing faster registration times (up to 30 days). It also stipulates that DAOs will not be responsible for their use of open source software alone. In addition, the law stipulates that most governance tokens are not securities if they do not confer any economic rights. This move also makes the Marshall Islands the first country to legally incorporate DAO series limited liability companies.