Are DAOs Strong Enough to Survive the Regulators? - Ep. 479
Unchained
Embrace Privacy to Mitigate Liability Risks
Participation in decentralized autonomous organizations (DAOs) can expose individuals to legal liabilities, especially under U.S. federal law. This necessitates that participants adopt privacy-focused practices to safeguard against potential judgments that could adversely affect them. U.S. participants are required to disclose their DAO involvement and token holdings in annual tax declarations, which ties them to the DAO's governance actions. As such, individuals may feel compelled to either alter their financial structures to avoid tax liabilities or obfuscate their participation to minimize legal risks associated with the actions taken by the DAO.
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