The Israeli government has created a special examination team to investigate the regulation of decentralized autonomous organizations (DAOs), and is now seeking public input on the matter until September. The team, led by the Chief Economist of the Ministry of Finance and the Head of the Corporations and Capital Markets Cluster at the Ministry of Justice, will examine the activities and decision-making processes of DAOs.
The team is also looking into the use of native crypto tokens in DAOs, and the associated risks, in order to provide regulatory clarity. According to the announcement, The team examines the required regulation, including regarding the corporate status, the taxation aspects, and other aspects of DAO in order to create legal certainty, reduce the risk factors in the activity through DAO, and realize the potential for the Israeli economy.
Israel has been pushing initiatives to produce regulations for the crypto sector that could support the growth of the industry, such as potentially eliminating capital gains taxes for foreign crypto investors. However, the country has also followed other jurisdictions like the European Union in taking stricter measures for certain crypto, such as stablecoins, following the high-profile collapses of 2022.
The public can submit comments on the government’s plans until September 3.