ApeCoin DAO as a registered DAO in USA

A DAO can be formed online in the States of Wyoming legally. So think it is very important to have the ApeCoin DAO registered as a legal entity in order to work with U.S. regulators and cryptocurrency token security law overseeing by SEC, USA. This will separate ApeCoin DAO from the ApeCoin Foundation. Therefore, it is a very important step to become a legit decentralized entity.

https://sos.wyo.gov/Business/Docs/DAOs_FAQs.pdf

Please give me a like or vote if I should type a AIP proposal about this. Thanks Ken

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I’m not a fan of subjecting the DAO to the regulatory oversight of a single jurisdiction

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The ApeCoin DAO might have to register in different countries with each country’s jurisdictions in order to satisfy the local government regulations and law … I think. Otherwise the DAO entity itself is hard to operate globally. What do you think?

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I see a world where the DAO creates and funds other entities that register and comply as needed, but it remains fully decentralized and out of reach, because it can and it should.

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There just appears to be a misunderstanding here. ApeCoin Foundation was setup in Cayman Islands obviously to avoid USA oversight as much as possible. Nothing prevents it from setting up a business in say America if it wanted to, but the preference is not to do that presently. This aligns with the idea of not generating revenue for itself either; the only thing ApeCoin Foundation does is grant out funds.

The SEC is already probing Yuga Labs, and presumably ApeCoin Foundation (though we may not be privy to the exact details).

The Foundation already provides legal cover for the DAO. There is no need to register in the USA.

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This is very interesting when you said “ avoid USA oversight“…

The problem is if any entity trying to operate globally, it is very hard to avoid the U.S. government from oversight its operations. especially when it come to a crypto related entity… I would prefer to complies instead of avoiding…

I think if ApeCoin DAO is a registered in Wyoming States of America, and operates as a legal entity with transparency as a DAO - that’s preferable.

Again, thank you for your input and correction of the misunderstandings.

Just my opinion, Ken

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To clarify though, nothing prevents ApeCoin Foundation to already be working with US Regulators. However, this structure simply avoids/limits actions US regulators can take against the DAO presently. I’ve mentioned this before in the forums that I don’t think we should be surprised if ApeCoin Foundation is in fact already in communication with the SEC, but we as general members are simply not made aware of it; this would be reasonable to think since we already know of the Yuga Labs probe.

Last point on the current legal structure, it also helps to better facilitate on-going operations while we are in this period of regulatory uncertainty. For example, if were registered in the USA, we’d also be subject to US tax laws which are unfavorable for the DAO purposes compared to Cayman Islands tax laws.

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“US tax laws which are unfavorable for the DAO purposes compared to Cayman Islands tax laws.”

That make sense! Maybe the ApeCoin DAO needs more time to grow and decentralize far enough like the Ethereum Foundation. So SEC will leave us ( ApeCoin ) alone as a global entity! :slight_smile:

I believe Yuga Lab already have a group of expert CPAs and Lawyers dealing with these issues. SEC’s probe is harmful in nature for any business entity.

Anyhow, there is a danger to avoid the tax or law, because authorities have the abilities to shutdown the organization. Especially if that entity is operating in the U.S. market. There are many ways to be compliant with the laws and regulations. It is a matter of how much we know to deal with it.

Thank you for your answers, Ken

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And unfortunately the SEC is currently operating as a regulator by enforcement. I do think that we will get more regulatory clarity in the coming couple years (fingers crossed), and so it is likely wise to hold of on talks of ApeCoin DAO subjecting itself to US regulation. The issue is, US regulation is very unclear.

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can you elaborate on why you think this is an important step? Personally think we leave US out of it until there is more regulatory clarity.

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There is a work around solution, instead of registering ApeCoin DAO, we might well register an independent nonprofit corporation to serve the ApeCoin DAO.

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