Central Pacific nation becomes first sovereign country to set up legal registration of decentralized autonomous organizations for regulatory and tax purposes, creating a global hub for DAOs
MARSHALL ISLANDS, Feb. 15, 2022 (GLOBE NEWSWIRE) -- The Republic of the Marshall Islands (RMI) has become the first sovereign country in the world to allow decentralized autonomous organizations (DAOs) to register as legal entities recognized by the international legal system. This development was made possible through the RMI’s recent passage of the Non-Profit Entities (Amendment) Act 2021, and made official with the successful incorporation of Shipyard Software’s Admiralty LLC — the first DAO to achieve legal status under this new law.
DAOs are blockchain-enabled organizations that enable new forms of collective action and decision making and are widely used in decentralized applications (DApps), NFTs, charitable causes, decentralized finance (DeFi), and other emerging tech sectors. MIDAO Directory Services Inc., a domestic-based organization, has been established to help DAOs register as legal entities within the Marshall Islands.
MIDAO assisted Shipyard Software in incorporating Admiralty LLC. The organization’s founding mission is to simplify the incorporation process for DAOs in the RMI while ensuring full compliance. With this, the RMI is now open to blockchain-based projects across the world that wish to be legally recognized on the global stage.
The RMI’s track record of regulatory compliance and fair legal adjudication is recognized worldwide, and the country is well-positioned to become the leading domicile for DAOs in the world. Just as the state of Delaware has become synonymous with incorporation within the U.S. the RMI aims to become the de facto choice for DAOs interested in legally registering their organization — and officially taking their rightful place within the current global legal system.
“We are in the midst of the blockchain revolution, and people all over the world are exploring new ways to organize and make decisions in a more efficient and egalitarian manner. Decentralized autonomous organizations present an enormous opportunity for people to organize in a more efficient and less hierarchical manner. We in the Marshall Islands recognize this unique moment to lead in this critical space,” said Bobby Muller, former RMI Chief Secretary, and President and Co-Founder of MIDAO.
RMI is also uniquely situated against competitor nations as the most ideal place for DAO registries. It has full sovereignty on the international stage, unlike Wyoming, which is subject to the federal laws of the U.S. The Caymans and Switzerland have made headway in recognizing cryptocurrency and blockchain companies, but do not have specific carve outs for DAOs in their laws. Additionally, RMI’s success in the maritime sector’s registry - 20% of the world’s shipping capacity is registered in RMI - is evidence that RMI can meet the unique needs of DAOs at scale. Meanwhile, as a Freely Associated State with the US, the RMI benefits from US institutions. The Department of the Interior (DOI), the US Postal Services, Federal Emergency Management Agency (FEMA), Federal Aviation Administration (FAA), and the US Military provide services to the RMI as if it were part of the US.
“DAOs are the next major iteration of human organizational structure. As mass adoption of blockchain technology takes off it is critical that DAOs be explicitly recognized as a new corporate entity on the international stage. We are honored to form the first DAO in the RMI and take the first step in legal formalization of the DAO revolution,” said Mark Lurie, CEO and Co-Founder of Shipyard Software.
About Shipyard Software
Shipyard Software builds elegant decentralized exchanges for specific types of trades, traders, and instruments, starting with Clipper — a DEX with the best available prices on retail trades. We empower individuals to trade in free and fair markets built just for them. We believe every person is their own captain and deserves a trusty vessel as they explore the vast and exciting world of DeFi. For more information, please visit shipyardsoftware.org.
For Media Inquiry - jo@serotonin.co
