In October 2023, the UAE's first Web3-focused economic free zone, RAK Digital Assets Oasis (the “RAK DAO”), was launched in the Emirate of Ras Al Khaimah.
RAK DAO aims to be the global hub for the blockchain and digital assets ecosystem.
It's important to note that RAK DAO is an Economic Free Zone, and its licensing authority has the power to register companies and grant business licenses for non-regulated business activities. If an entity registered in RAK DAO plans to carry out Virtual Assets (the “VA”) activities, which are regulated at the Federal level, they will need to obtain a relevant Virtual Asset Service Provider (the “VASP”) license from the Federal Regulator – Emirates Securities and Commodity Authority.
RAK DAO acknowledged the rise of DAOs as a necessary and integral part of the infrastructure for the Web3 economy. Therefore, shortly after its establishment, the Free Zone began developing its distinctive DAO regulatory regime tailored to the needs of the Web3 industry.
RAK DAO has undertaken a comprehensive examination of the jurisdictional frameworks available for legal wrap...