In the grand scheme of things, Blockchains are a relatively new technology, which for many years critics and regulators dismissed as an innovation that would eventually be adopted, but wouldn’t have a deeper effect on society. As such, when the technology allowed for the development of new Decentralized Autonomous Organizations (DAOs), they existed in a regulatory blind spot.
The problem then is that these projects have grown much in the last decade, and are now often actively managing and processing billions of dollars worth in capital. Yet, they still often aren’t recognized as legal entities, and in some jurisdictions, the individual DAO members might be liable for any offence that a single member of the organization might have committed.
Furthermore, some legislators have attempted to try to create legislation that would impact DAOs, but these are not often laws based on praxis or firsthand experience. Hence, on one hand, there is a dearth of legal precedent, and on the other, the regulation that is being created is not based on what would be good and useful for the industry and society in the long run - and to solve this issue, industry practitioners created the WACEO.
The WACEO is a non-profit organization, established in 2018, with the goal of enabling decentralized ledger companies to operate in compliance with regulatory frameworks by creating legal best practices for its DAO members, as well as starting a dialogue with regulators throughout the world.
Ultimately, the WACEO seeks to provide DAOs with the tools necessary to be in good legal standing and acknowledged as legal entities. And in addition, it pools the member DAOs’ expertise and resources to jointly lobby for their interests with the lawmakers.
Joining the WACEO requires DAOs to pass a Legal Audit Review (LAR), which assesses their fitness as a DAO from a legal perspective. Upon addressing any outlying issues, they gain access to the WACEO suite of services, which include: Auditing, Supervision, Training and Arbitration.
Given the novelty of this industry, the legal frameworks governing the space are unclear. However, the WACEO provides much-needed clarity in the blockchain industry and helps shape its future by communicating with regulators.
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