On 8 June 2023 the Society for Computers and Law, in collaboration with The Law Society and Tech London Advocates published the third edition of the Blockchain: Legal & Regulatory Guidance Report. The report was collated by Mishcon de Reya's Co-Lead of the Blockchain Group and founder of the TLA Blockchain Legal and Regulatory Group, Anne Rose.
The Corporate department's Arthur Horsfall contributed to section 8 of the report (DAOs - Decentralised Autonomous Organisations) in considering the types of legal structure a DAO (in its pure form) may be considered under the laws of England and Wales; and whether it is possible for a DAO to make use of corporate legal structures.
Along with commentary from Grace Houghton (Tax) and Guy Wilkes (Regulatory) of Mishcon de Reya, Marc Piano and Luis Powery of Harney Westwood & Riegels LLP, Petri Basson and Karel Oliver of Hash Directorships and Marc Jones of Stewarts Law LLP, this section (pages 136-159 of the report) considers the ever-changing landscape of DAOs and their uses.
The section is a comprehensive guide to DAOs including what they are, their pros and cons, current trends and legal implications to consider when setting up a DAO. As set out in further detail in the report, the regulatory, tax and members' liability implications on establishing/taking part in a DAO will vary depending on the location, structure and activities of the DAO.
If you are considering setting up a DAO or have any questions regarding participating in a DAO, please contact Arthur Horsfall or another member of our Blockchain Group.