Sushi Swab to establish legal entities in Panama and the Cayman Islands

With regulators interested in cryptocurrencies, SushiSwap and other DAOs are preparing to improve their legal structures to avoid unnecessary penalties or lawsuits.

On October 26, Sushiswap, a decentralized exchange (DEX) with yield farming capabilities, decided to adopt a legal structure through three entities based in the Cayman Islands and Panama.

According to Sushiswap’s statement, they have already engaged legal counsel to advise on planning and implementing the legal structure of SushiDAO and regulating the entity’s legal framework and products.

Sushiwab’s suggestion

How will each institution work?

The Cayman Islands Foundation (DAO Foundation) will manage SushiDAO IRL through a board of directors that will have “the flexibility to manage the governance process on the blockchain for sushi” to facilitate off-chain activities.

In addition, the new institution will be responsible for other core functions such as treasury and grant management, the chain management process, and facilitation of proposals and voting activities.

The Panama Foundation manages the current protocol, including the order book/AMM, Kashi and contribution contracts, and provides assistance to service providers.

Finally, a new company called “Panamanian Corporation” will be responsible for the protocol operations related to the GUI (front end) layer.

This company will operate as a wholly owned subsidiary of the Panama Corporation, helping service providers develop and maintain the protocol’s GUI layer.”

SushiSwap مجتمع community interacts

Although the proposal has already been approved and the team behind SushiSwap is working on its implementation, the extent of the changes has sparked a lot of controversy among Sushiswap fans, with some users questioning whether the protocol is making the right decision when it comes to creating the Cayman residence. The islands and Panama, when regulatory issues arise, must be willing to comply with their regulations. as an example, Hamletmashchen said:

“IMO all chefs should embody this core spirit and allow it to guide all legal discussions/conclusions. It is unacceptable for us to restrict these open source tools from anyone wanting to use them, period. Otherwise, just build on Amazon AWS, Apply for a money transfer authorization and contact them daily.

Nikrichwin, for his part, suggested that the proposal was due to its nature. However, while it seems like a strong recommendation that it have a legal structure, it could affect the protocol’s long-term performance.

Another user by the name of Neiltbe, apparently part of the team that developed the proposal, responded to the community’s concerns by saying that they suggested using an enterprise and company in Panama for the following reasons:

“(1) The nature of the protocol/GUI layer, (2) Panama corporations are non-commercial in nature and have no beneficial owners and are therefore ideal for protocol deployment, (3) Sushi takes into account the FATF VASP guidelines and the structure is designed to avoid engaging in VASP activity. Where applicable, (4) the enterprise configuration process leads to two entities that can house the protocol and GUI layers separately, reducing the need to configure additional entities, and (5) there is no corporate tax on these units.”

SushiSwap’s post for creating legal entities in Panama and Cayman Islands first appeared on CryptoPotato.

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