Marshall Islands adopts revised version of DAO law, incorporating Series DAO LLC

The Republic of the Marshall Islands’ parliament passed legislation last week to continue improving its DAO laws. Under the new regulations, MIDAO will serve as an extension of the local registry MIDAO Directory Services for DAO and Web3. The author of the bill stated that the revised Decentralized Autonomous Organizations Law of 2023 is different from the 2022 bill because it is "the most comprehensive DAO law in the world" and will become "a blueprint for the regulation of DAOs in other parts of the world." The original law stated that DAOs did not require a board of directors, if they were on the blockchain, no written or paper records were required, and every member of the DAO could be anonymous except for one person. Those who wish to remain anonymous do not need to be in the Marshall Islands but will need to provide KYC details. The revised law enhances the benefits of the original law, providing faster registration times – up to 30 days instead of 30-60 days. It also stipulates that the DAO will not be responsible for the use of open source software just because it created it. Furthermore, by law, most governance tokens are expressly not securities. To open a DAO in the region, interested parties need to visit MIDAO.org and complete the process with MIDAO acting as the registered agent. The DAO or designated members of the DAO are not required to open a local office or hire a local law firm. The move also makes the Marshall Islands the first country to bring Series DAO LLC into law. For DAO, the usual approach is to set up a sub-DAO in a DAO. Series DAO LLC allows sub-DAOs to have independent assets and liabilities. (CoinDesk) It was reported at the end of December last year that the Marshall Islands passed the "2022 DAO Act", and the new law recognized DAO as a limited liability company. The government has also provided a registration process for the crypto community, and DAOs need to have “DAO LLC” as part of their name and can obtain official registration in the Marshall Islands.