Australia: Tax authority wants to legally recognise DAO
Australia: Tax authority wants to legally recognise DAOAustralia: Tax authority wants to legally recognise DAOAustralien Sydney

cThe Australian digital finance industry now also wants to legally recognise DAO. The new legal initiative in Australia aims to enable DAO project governors to enter into contracts with other legal entities via DeFi tools. It is intended to allow project governors that are part of DAO Limited to implement blockchain technology to leave traditional intermediaries out of the equation.

The new initiative, which presents DAOs

Specialists as well as lawyers focusing on DeFi (decentralized finance) are in the process of creating a new initiative. This initiative is about virtually a new type of legal entity representing DAOs (decentralized autonomous organizations) in Australia.

Global law firm Herbert Smith Freehills and the Digital Law Association of Australia are lobbying for these new decentralized models of governance to be officially recognized by the Australian Senate Committee. As reported by the Australia Financial Review on Thursday, these new DAO model would also replace the board of directors with an internet community.

What exactly is the DAO Limited?

In establishing the DAO Limited, the initiative mainly intends to allow project governors to enter into DeFi Tools contracts with other legal entities. In addition, blockchain technology is to be implemented so that traditional intermediaries such as stock exchanges and banks are no longer necessary. In addition, the limited liability status is intended to prevent Australian members of a DAO from being liable for losses if members of the community make the wrong decisions.

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According to lawyers, DAO legalization in Australia could also make the country much more attractive to global companies with digital assets. This is because more and more groups of local DeFi companies are relocating to places like Germany or Singapore. With this legalization, Australia could be an interesting location for these companies.

ShapeShift opens up its platform

A DAO is a decentralized organization that have certain sets of rules. These are coded as a computer program and are based on blockchain technology. The first very important step a DAO zu formed in 2016, when The DAO established a machine-driven venture organization.

The news from Australia, as well as the news from Wyoming legally recognizing the first DAO in the United States, comes at the right time. Meanwhile, some cryptocurrency exchanges are moving to a decentralized structure. Just yesterday, crypto exchange ShapeShift announced it would open source its platform. In doing so, it plans to dissolve its entire corporate structure to underscore its commitment to DeFi.

Founder of ShapeShift and CEO Erik Voorhees had the following to say about opening up the platform:

‘Inspired by the broader DeFi community, we will now help develop a new model of economic coordination for the 21st century. No corporation, no banks and no borders. The tools are ready.

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