“DAOs Are the Future, but Need More Oversight” LBank CMO Echoes Davos 2023

22 January 2023, 16:00 GMT+0000
Updated by Petar Jovanovic
22 January 2023, 16:00 GMT+0000

The World Economic Forum Annual Meeting kicked off earlier this Monday, January 16th. The number of crypto business participants at Davos this year saw a drop due to last year’s market slide. 

Nevertheless, the presence of the blockchain and crypto industry was still very much visible at the 4-day event. Davos 2023 has seen many panel discussions on blockchain technology and cryptocurrency. One topic was decentralized autonomous organizations (DAOs) and their regulation.

One clear consensus out of Davos 2023 is that crypto needs regulation. Davos 2023 has seen active participation from government policy-makers and regulators, coming together to discuss the best way to regulate the evolving industry. Specific discussions about DAOs showed that though this innovative way of collaboration shows promise, more needs to be done to prevent it from endangering users. 

Finland’s communications minister, Timo Harakka, said during a panel at Davos 2023 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. 

“DAOs are a new way to collaborate and communicate. Though not without its problems, it shows the wish to be equal and fair. We’ve already come a long way with many notable DAOs, but I think we will surely see more in the future. With that, we will need protection and regulation.” Kaia Wong, CMO of global crypto exchange LBank, said.

In addition, the WEF released a DAO toolkit on January 17th, with contributions from more than 100 industry experts. The document works as a guide for developers and policy-makers in hopes of helping them better understand, regulate, and govern DAOs. 

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A more condensed version of the toolkit was published in the form of an article on the same day, explaining a lot 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,” the article proposed as a solution. 

“We believe in giving power to the users. However, with the current landscape, there is the possibility that users could be taken advantage of. Regulation will be needed to protect users and their assets. It is also important to remember we are trenching new ground with all of these new technologies, and we must also give it enough room to grow.” Wong added. 

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