Decentralized autonomous organizations (DAOs) need a comprehensive regulatory framework if they are to make a place in the future of the financial sector, suggests the European Central Bank’s Occasional Paper (OP).
The OP “The future of DAOs in finance - in need of legal status,” authored by Ellen Naudts, market infrastructure expert payments at the ECB, highlighted how technology outpaced regulation in relation to DAOs, having a negative impact on the safety and sustainable growth of the ecosystem.