How Should DAOs Be Regulated? A New Perspective on Decentralization

Posted November 9, 2022 | Technology | Amplify
DAO regulation
Henrik Axelsen and Omri Ross provide an understanding of the challenges associated with regulating DAOs and the opportunity (if not necessity) of a transformational shift in the existing regulatory paradigm. The characteristics of DAOs, including fluid membership and locational independence as well as the financial resources implicated, raise the question of who, what, and where to regulate. The precedent of a DAO sanctioned for enabling money laundering highlights the urgency of initiating this discourse. With traditional finance as a reference, the authors discuss whether activity- or entity-based regulation is more appropriate and what current regulatory decisions mean for the DAOs landscape future.
About The Author
Henrik Axelsen
Henrik Axelsen is a PhD Fellow in the Department of Computer Science at the University of Copenhagen (UCPH), Denmark. His research focuses on bridging decentralized finance/Web3 tooling and traditional finance. Prior to academics, Dr. Axelsen was a Senior Partner with a Big 4 consulting firm, focusing on financial services. He earned a master’s degree in law from UCPH and an MBA from Copenhagen Business School. He can be reached at…
Omri Ross
Omri Ross is Chief Blockchain Officer at eToro, a financial services company, and Associate Professor in the Department of Computer Science at the University of Copenhagen (UCPH), Denmark. At eToro, he oversees R&D of blockchain-based products and services, leading multiple strategic initiatives. In his research, Dr. Ross explores the application of blockchain and distributed ledger technology in financial services, emphasizing decentralized… Read More
Don’t have a login? Make one! It’s free and gives you access to all Cutter research.