Bessie Liu

<div id="highlights-block_7dd1b740fa024ba548cd708c0322d92f" class="highlights">
 <ul>
 <li>The implementation of the new legal structure received unanimous support from community members</li>
 <li>DAO members cast 11 million voting tokens in favor of the proposal</li>
 </ul>
 
</div>



SushiDAO, the governing body of decentralized cryptocurrency exchange SushiSwap, is implementing a new legal structure after receiving <a href="https://snapshot.org/#/sushigov.eth/proposal/bafkreibawm6u4tsq4e5lqwz5yo3rg2k4p6upg5eqaeen33ghmuwxttiaqm" target="_blank" rel="noreferrer noopener">unanimous support</a> from community members.



Sushi’s current administrative structure includes a DAO of community members with voting privileges, alongside an execution team that manages smart contracts and the front end of the protocol.



The new legal structure will split Sushi into three new entities: a Cayman Islands DAO Foundation, a Panamanian Foundation and a Panamanian Corporation.



The Cayman Island Foundation will oversee all administrative aspects of the DAO, including treasury, grants and on-chain governance management. It will also facilitate proposals and voting, and enter into agreements with service providers as part of the grant-making process.



Smart contracts related to Kashi — the exchange’s lending and margin trading platform and automated market maker — will be handled by the Panamanian Foundation, as well as staking.



The Panamanian Corporation, which will be a wholly owned subsidiary of the Panamanian Foundation, will manage and assist with developing and maintaining the web-facing apps that make Sushi’s protocol accessible to the public.



According to <a href="https://forum.sushi.com/t/recommendation-for-sushi-legal-structure/11158" target="_blank" rel="noreferrer noopener">proposals</a>, Sushi also looked into setting up governance in Switzerland but determined that it was inappropriate as the regulatory and taxation model was “not favorable to growth companies.”



<h2 class="wp-block-heading">SushiDAO opts to avoid &#8220;flawed&#8221; DAO legislation in Wyoming</h2>



Panama is an attractive place to incorporate due to its free economic zones, non-existent income and tax withholdings and physical proximity to the United States.



But Neil Bhasin, a community member of SushiDAO, <a href="https://forum.sushi.com/t/recommendation-for-sushi-legal-structure/11158/16" target="_blank" rel="noreferrer noopener">said</a> Panama was chosen to host its protocol governance as “Panamanian foundations are non-commercial in nature and do not have beneficial owners.” 



Further, Bhasin highlighted that “the corporate formation process results in two entities that can separately house the protocol and GUI [graphical user interface] layers, which reduces the need to form additional entities.”&nbsp;



It is interesting to note that Wyoming, a US state which has catered to DAO LLCs, was not considered an appropriate home.



According to Bhasin, this was because “the Wyoming DAO legislation is widely accepted by those in the industry, including myself, as being flawed.”&nbsp;



“It’s also untested in the courts. We’re meant to be offering protection to devs and ops [developers and operations] folks, not exposing them to experimental, untested, poorly drafted legislation,” he said.



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Cayman Islands

SushiDAO Seeks Shelter in Cayman Islands, Panama

Sebastian Sinclair

<div id="highlights-block_62ac19350fdbc" class="highlights">
 <ul>
 <li>President Cortizo said the bill requires amendment in accordance with the country&#8217;s banking regulations</li>
 <li>Panama is attempting to solidify its image as a technology innovation hub within the majority Spanish speaking continent</li>
 </ul>
 
</div>



Panama&#8217;s president, Laurentino Cortizo, has partially vetoed a bill enabling citizens to use crypto as a form of payment for goods and services as well as taxes, sending the regulations back to the country&#8217;s <a href="https://cms.blockworks.co/panama-moves-forward-with-crypto-regulation-bill/" target="_blank" rel="noreferrer noopener">National Assembly</a>.



Bill No. 697 had passed through the last leg of its legislative journey, before making its way to the president&#8217;s desk where it was knocked back, local news outlet <a href="https://www.prensa.com/economia/cortizo-veta-parcialmente-el-proyecto-de-ley-que-regula-los-criptoactivos/" target="_blank" rel="noreferrer noopener">La Prensa</a> reported Thursday.



A partial veto is a type of veto power enabling a chief executive to reject certain provisions within a bill without vetoing its entirety. The bill will now head for another vote in the assembly, where it is expected to undergo changes to some passages.



President Cortizo, who has remained cautious about the wording of the bill for fear of facilitating money laundering, said the current piece of legislation required amendments in accordance with the country&#8217;s banking regulations.



Latin America is fast becoming a major adopter of cryptocurrencies and digital assets, following El Salvador&#8217;s historic decision last year to make bitcoin legal tender through legislative means. A <a href="https://cms.blockworks.co/bitcoin-now-legal-tender-in-special-economic-zone-of-honduras/" target="_blank" rel="noreferrer noopener">special economic zone</a> in Honduras also formally legalized crypto as a form of money in April.



Panama is attempting to solidify its image as a technology innovation hub within the majority Spanish-speaking continent, and the attempt to finalize the bill by the country&#8217;s assembly was seen by many as a path toward it.



Congressman Gabriel Silva, who co-authored the bill, said in a <a href="https://twitter.com/gabrielsilva8_7/status/1537496339646500866?s=20&amp;t=cl_ogufSXxTPFdWdAkFkKg" target="_blank" rel="noreferrer noopener">tweet</a> Thursday the partial veto was a &#8220;lost opportunity&#8221; to create jobs, attract investment and incorporate technology into the public sector.



The crypto bill joins a list of other pieces of legislation overseen by Silva that have been knocked back by President Cortizo including a conflict of interest law and a mental health law, <a href="https://twitter.com/gabrielsilva8_7/status/1537500454455738371?s=20&amp;t=SuIBSwXjkffEjOS9SFf25Q" target="_blank" rel="noreferrer noopener">among others</a>.



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crypto bill

Panama’s President Partially Vetoes Crypto Regulations

Casey Wagner

<div id="highlights-block_626af50affc18" class="highlights">
 <ul>
 <li>If Panama’s president approves the project, citizens will be able to use crypto for everyday purchases and tax payments</li>
 <li>The law aims to promote “the use of distributed ledger technology” in government to improve transparency</li>
 </ul>
 
</div>



Panama became the latest country to move forward with cryptocurrency legislation Thursday when the National Assembly passed a bill that will allow for private and public use of digital assets.



If the proposal is signed into law by Panamanian President Laurentino Cortizo, citizens will also be able to pay taxes using cryptocurrencies, the National Assembly <a href="https://twitter.com/asambleapa/status/1517210683556904960?s=20&amp;t=f74XNv1x6ASG5emB41IReQ" target="_blank" rel="noreferrer noopener">said</a>.  



&#8220;This bill seeks for Panama to become a hub of technology innovation in Latin America,&#8221; Gabriel Silva, a member of the National Assembly and one of the lawmakers promoting the bill, said during a <a href="https://twitter.com/ecotvpanama/status/1519734268716785665?s=20&amp;t=0tvuJr_7eq3gcM3gAQhH_w" target="_blank" rel="noreferrer noopener">local news interview</a> Thursday. 



The project, if passed, will allow Panamanian to buy goods and services in cryptocurrencies at any legally operated civil or commercial business.



The project goes beyond regulating individual tokens, Silva said, aiming to provide a broader scope than El Salvador’s bitcoin as legal tender measure that was passed in September.&nbsp;



The law aims to promote “the use of distributed ledger technology and blockchain in the digitalization of the identity of natural and legal persons in or from the Republic of Panama and as a means to make the public function transparent,” a translated version of the <a href="https://www.gabrielsilvadiputado.com/_files/ugd/3b5653_489fb9fc856e4d8c8de8915275801660.pdf" target="_blank" rel="noreferrer noopener">project</a> read.



The news comes a day after the Central African Republic became the <a href="https://cms.blockworks.co/central-african-republic-looks-for-quick-wins-becomes-second-country-to-adopt-bitcoin/" target="_blank" rel="noreferrer noopener">second country</a> to adopt bitcoin as legal tender. The African nation has also been working on creating a legal framework around the use of cryptocurrencies that will focus on defining how citizens can interact with digital assets, Finance Minister <a href="https://www.finances.gouv.cf/article/17/le-ministre" target="_blank" rel="noreferrer noopener">Herve Ndoba</a> said, according to a <a href="https://www.bloomberg.com/news/articles/2022-04-26/cryptocurrency-regulator-proposed-by-central-african-republic" target="_blank" rel="noreferrer noopener">Bloomberg report</a>.



Nboda added that the Central African Republic is not trying to mimic El Salvador, which became the <a href="https://cms.blockworks.co/el-salvador-pushes-volcano-bond-issue-unveils-state-owned-company-backing/" target="_blank" rel="noreferrer noopener">first country</a> to adopt bitcoin as legal tender in September 2021.



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