Internet City, Dubai, 23rd January, 2023
Kaia Wong, CMO of global crypto exchange LBank, has commented on remarks made by global leaders at Davos 2023 concerning the use of DAOs. At the World Economic Forum event, decentralized autonomous organizations (DAOs) and their regulation came under the spotlight.
The number of crypto businesses participating at Davos this year saw a drop due to last year’s market slide. Nevertheless, the blockchain and crypto industry presence was still very much visible at the four-day event which started on January 16. Davos 2023 featured a number of panel discussions on blockchain technology and cryptocurrency. One topic was DAOs and the opportunities they present for driving greater organizational efficiencies.
Finland’s communications minister, Timo Harakka, said during a Davos panel that the EU should consider legally recognizing DAOs that govern web3 apps. Harakka expressed concerns over the current lack of regulation and potential problems if the EU does not think of regulation on a broader scale.
Responding to these comments, LBank CMO Kaia Wong said: “DAOs are a new way to collaborate and communicate. Though not without their problems, they have the potential to promote a more egalitarian and transparent way of working and supporting treasury management. We’ve already come a long way in terms of DAO adoption, but there’s a need for greater regulatory clarity before DAOs can be more widely utilized.”
One clear consensus to emerge from Davos 2023 is that crypto needs greater regulation. The event saw active participation from government policy-makers and regulators, who came together to discuss the best way to regulate the evolving industry. The discussions addressing DAOs showed that more needs to be done to safeguard users, who face little legal protection in the event of a DAO being dissolved.
“At LBank, we believe in giving greater power to crypto users,” said Kaia Wong. “However, given the current landscape and the lack of a battle-tested DAO framework, there is the possibility that users could be taken advantage of. Regulation will be needed to protect users and their assets, especially when funds are pooled within a DAO.”
The WEF released a DAO toolkit on January 17 with contributions from more than 100 industry experts. The document works as a guide for developers and policy-makers with the goal of helping them better understand, regulate, and govern DAOs.
A more condensed version of the toolkit was published in the form of an article on the same day, explaining many of the issues DAOs face and the need for oversight. “Most seriously, DAOs operate within a fragmented and uneven landscape of law, policy, and regulation,” the article stated. “Collaboration across industry and government is crucial to realizing the potential, and mitigating the risks, of these systems.”
LBank is one of the top crypto exchanges, established in 2015. It offers specialized financial derivatives, expert asset management services, and safe crypto trading to its users. The platform holds over 7 million users from more than 210 regions across the world. LBank is a cutting-edge growing platform that ensures the integrity of users’ funds and aims to contribute the global adoption of cryptocurrencies.
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LBK Blockchain Co. Limited