The European Union should consider legislation to recognize decentralized autonomous organizations (DAOs) that govern Web3 applications, Finland’s communications minister said during a panel at this year's World Economic Forum.

The move could prevent having to alter thousands of laws or countries undercutting each other in the race to attract innovative business, Timo Harakka said.

“There are a lot of new players and actors in the Web3 world… not reflected very well in existing legislation,” he said. “Take a DAO for instance: Where does legislation stand?”

Harakka said new centralized laws could prevent a shattering of Europe’s legal codes – but that the European Commission, responsible for proposing new EU laws, had its eye on other matters.

“We are relying on the European Commission to be the initiator” and are “eagerly looking forward to its work,” Harakka added.