Is there a need for regulation of DAOs in Switzerland?

Abstract

Decentralized Autonomous Organizations (DAOs), as open, scalable, and self-organized networks, do not easily fit into the available corporate legal forms in Swiss law. The completely new regulations for DAOs developed abroad have some merits; however, they involve lengthy legislative efforts and initially create legal uncertainty. In contrast, Swiss association law appears largely suitable for application to DAOs, containing appropriate rules regarding legal personality and limitation of liability. However, some specific adjustments should be made to the incorporation documents (e.g., ballot voting, multiple voting rights, and/or the design of management competences). Consequently, there is no need for a specific DAO regulation in Switzerland.