Does DAO not require special laws? The British Law Commission believes that the time is not yet ripe

UK Law Commission: Existing laws are enough

This site (120BtC.coM): The Law Commission of England and Wales (The Law Commission of England and Wales), which is responsible for reviewing and recommending legal changes to the British government, said, It is not recommended to establish a new legal framework for DAOs. Because these organizations may already fall within the scope of existing regulations, companies need to obtain authorization under current regulations if they operate in the UK.

DAO may be regulated by the Financial Services and Markets Act 2000

The Law Commission pointed out in a report published on Thursday that if the DAO carries out "specified activities" related to "specified investments", it may be regulated by the Financial Services Act 2000. and Market Law 2000.

According to this law, when governance tokens are similar to stocks, confer voting rights, and are issued as investments in DAO, these tokens are regarded as "specific investments." "Specific activities" refers to specific behaviors or activities related to these investments, such as issuance, sales, promotion, etc.

The British Law Commission believes that unified legislation is inappropriate

Recently, the legal status of DAOs has attracted much attention, and US courts are also exploring how to deal with these organizations. The British Law Commission believes that due to differences between different DAOs, each DAO may apply different laws, and a unified legislative approach may not be appropriate.

The committee stated that at this relatively early stage of the development of the DAO, it does not recommend the establishment of a dedicated legal framework for it, mainly because there is currently no consensus.

DAO legal status varies by type, and complete decentralization does not mean compliance

The report points out that the public law applicable to DAO depends on its type. Some may be considered unincorporated associations, where participants interact according to rules and are only responsible for their own actions. In some cases, DAOs may be subject to corporate tax, and the committee recommends that international tax frameworks be considered.

From a litigation perspective, a fully decentralized DAO may still face civil litigation from third parties, law enforcement actions by regulatory agencies, or criminal prosecution. The summary of the report states that "Smart Contracts can constitute legal contracts."

Law Commission Recommends Further Analysis

The Law Commission of England and Wales has previously helped draft regulations promoting the digitization of documents, which have promoted the use of distributed ledger technology in trade.

The Commission earlier this year sought views on draft legislation to label cryptocurrencies as property. The report also recommends that bodies such as the Jurisdiction Working Group conduct a more in-depth analysis and recommend that the judiciary, legal committees, regulators and other legal professionals jointly discuss when fiduciary security should be subject to encryption. Currency Developer.

The above is the detailed content of Does DAO not require special laws? The British Law Commission believes that the time is not yet ripe. For more information, please follow other related articles on the PHP Chinese website!