Can a DAO be required to register with a regulatory body or obtain a business license?

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  • Germany


There are no specific DAO-related regulations that require a registration or a business
license. This means that creating a DAO as such is not subject to any specific obligations.

However, as the general laws apply, a DAO can nevertheless be required to register with a
regulatory body or obtain a business license, if it falls within the scope of the relevant

This depends on the single case, in particular on the activities of the respective DAO.
Especially DAOs, which collect funds from their members or other participants in order to
invest them to their benefit (see also investment DAOs), may be required to apply for a
license. DAOs offering certain financial services e. g. payment services, investment services,
or crypto custody services may also be subject to such regulations. Certain commercial
activities (e.g. offering gambling services to the public) may require a license or a registration with the competent Chamber of Industry and Commerce  (Industrie-und Handelskammer -IHK). Apart from regulatory law, as far as the DAO qualifies as a company defined by the
relevant corporate and commercial laws, it may be subject to registry obligations according to the Commercial Code (Handelsgesetzbuch – HGB) as well. E. g. companies pursuing commercial activities are required to register with the Commercial Register Court.

Zsofia Vig

Banking and Capital Markets Law (DeFi/Web3, Crypto in general, tokenized Securities)

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