Australia’s digital finance industry wants to legally recognize the DAO

Experts and lawyers specializing in decentralized finance (DeFi) are launching a plan to create a new type of legal entity that represents a decentralized autonomous organization (DAO) in Australia.

The country’s digital law association and global law firm Herbert Smith Freehills are lobbying the Australian Senate committee to formally endorse the new decentralized corporate governance model.These new DAO models will replace the board of directors with the Australian Financial Review of the Internet community Report Thursday.

The initiative specifically intends to allow “DAO Limited” project managers to sign contracts with other legal entities through DeFi tools and implement blockchain technology to eliminate traditional intermediaries such as banks and exchanges. The limited liability status will also prevent the Australian members of the DAO from being liable for losses caused by decisions made by community members.

According to lawyers, legalizing the DAO in Australia may make the country more attractive to global digital asset companies, as local DeFi entrepreneurs have reportedly moved offshore to jurisdictions such as Singapore and Germany.

related: Wyoming legally recognized the first DAO in the U.S.

DAO is a decentralized organization with a specific set of rules, which are coded as computer programs, usually based on blockchain technology.First most Important attempt The creation of DAO is “The DAO”, which is a machine operation risk organization established in 2016.

As the news came out, some cryptocurrency exchanges were turning to a decentralized structure.Yesterday, the ShapeShift cryptocurrency exchange announced plans to open source its platform and Dissolve the entire company structure To emphasize its commitment to DeFi. “Inspired by the wider DeFi community, we will now help create a new model of economic coordination in the 21st century. There are no corporate entities, no banks, and no borders. The tools are ready,” ShapeShift founder and CEO Eric Wallis Say.