Abu Dhabi Global Market (ADGM) has announced the launch of the world’s first-ever legal framework specifically designed for Blockchain Foundations and Decentralized Autonomous Organisations (DAOs). This pioneering framework is poised to establish a new global standard in the regulatory landscape of Distributed Ledger Technology (DLT) and blockchain sectors.
Developed in active collaboration with key players in the industry, this framework uniquely caters to the regulatory and operational peculiarities of the blockchain ecosystem. It represents a major step forward in providing a solid legal structure for both Blockchain Foundations and DAOs, addressing a long-standing gap in the digital assets world.
One of the critical features of the ADGM’s framework is its full recognition of Virtual Assets. This includes provisions for the issuance and governance of tokens, significantly enhancing the flexibility and efficiency of blockchain operations. The framework’s innovative approach allows entities to be established without the conventional bylaws, thereby accommodating diverse governance models such as token voting and smart contract usage.
Furthermore, the framework simplifies the incorporation and migration process for these organizations. With options for migration from other jurisdictions and legal protections to safeguard entity assets against foreign claims, ADGM offers a highly attractive proposition for both new and existing Blockchain Foundations and DAOs. The absence of a mandatory physical presence requirement further underscores the ADGM’s commitment to fostering a flexible and inclusive digital asset environment.
Underpinning this framework is the application of English Common Law, ensuring a familiar, stable, and trusted legal foundation. This integration is crucial in enhancing the international appeal and effectiveness of the ADGM’s framework, potentially driving more blockchain and DLT entities to consider setting up or migrating to this jurisdiction.
By instituting this forward-thinking framework, ADGM not only positions itself at the forefront of digital asset regulation but also significantly contributes to the broader evolution and maturity of the global blockchain industry. This development is expected to catalyze growth and innovation within the sector, establishing a more prosperous and regulated digital asset ecosystem worldwide.