Keywords
Decentralised Autonomous Organizations, DAOs, Governance tokens, Securities law, Corporate law, Jurisdictional analysis, Investor protection, Securities regulation, Corporate governance
Abstract
This paper examines the regulatory challenges surrounding Decentralised Autonomous Organizations (DAOs) in Canada and argues that existing legal frameworks— primarily designed for traditional corporate entities— are inadequate for addressing the unique characteristics of DAOs. While securities regulators have taken steps to oversee aspects of DAO activity, a broader regulatory framework is needed to provide legal clarity, address governance and liability concerns, and foster responsible innovation. This study recommends a dual approach: (1) extending corporate law reforms to define the legal status and obligations of DAOs, and (2) developing a regulatory framework that balances investor protection with the flexibility needed for decentralised governance. By addressing these gaps, Canada can create a legal environment that supports the growth of DAOs while ensuring market integrity and legal certainty.
Recommended Citation
Gulnoza Abdurakmonova, “From Code to Compliance: Regulating DAOs in Canada: Legal Frameworks and Challenges” (2025) 23:1 CJLT 1.
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