Republic of the Marshall Islands Passes Decentralized Autonomous Organizations Act 2022, Recognizing DAOs as Limited Liability Companies

The Republic of the Marshall Islands passed the Decentralized Autonomous Organizations Act 2022, extending the legitimacy of DAOs, The Block reported. Earlier this year, the Marshall Islands became the first country to recognize DAOs as legal entities. The Republic of the Marshall Islands recognizes DAOs as limited liability companies (LLCs), and the new law will allow the formation of DAOs in the Marshall Islands, providing these decentralized crypto communities with an internationally recognized LLC structure as long as they are identified as DAO LLCs. Marshall Islands' new law covers both for-profit and not-for-profit DAOs. The legal framework also recognizes the internal governance processes of these organizations, including voting and tokenizing proposals. The government has also created a registration process for these crypto communities. According to the announcement, the Marshall Islands DAO or MIDAO will host the registry. MIDAO will be responsible for joining the cryptocurrency and blockchain community who wish to register as a limited liability company in the island nation.