Decentralized Autonomous Organization (DAOs) in Italy: Legal and Regulatory Reforms within the Italian Third Sector (TS) and its effect on Blockchain Innovation

This study aspired to do the groundwork for transformational and innovative shift in corporate governance and the third sector (TS) orienting legal as well as regulatory frameworks with the growth and development in decentralized governance models and blockchain technology in Italy. This abstract sums up the foundational facets of legal investigation behoove by the onset of DAOs in Italy, circumscribing its scope, objective, and its significance. This research provides the analysis and understanding of interactions and interconnections amongst DAOs and Italian corporate law highlighting the legal complexities and suggesting for legal and regulatory reforms to get rewarded from this innovational paradigm presented by DAOs. A substantial focus is placed on integration and incorporation of DAOs in Italy’s Third Sector Organizations (TSOs), prospecting key challenges such as recognition, liability and compatibility with existing frameworks and required mandatory legal reforms to facilitate this process. The constitutional perspective on DAOs and such reforms is also discussed to foster blockchain innovation in Italy while guaranteeing compliance of consumer protection values and standards with financial regulations and formation of safe and secure ecosystem for DAOs operations. This research intends to advocate for the recognition and codification of DAOs in Italy within TSOs by taking guidance from global best practices.