Golden Finance reported that the Law Commission of England and Wales, which is responsible for reviewing and proposing legal changes to the UK government, said it does not recommend the creation of a new legal framework for decentralized autonomous organizations (DAOs) because they may be subject to existing regulations that require companies to obtain authorization to operate in the UK. The independent statutory body wrote in a paper published on Thursday that if DAOs engage in "specified activities" related to "specified investments," they may be subject to the Financial Services and Markets Act 2000. When governance tokens look like shares, grant voting rights, and are issued in exchange for investing in DAOs, they are considered specified investments. Token advertising may be subject to promotion rules that prohibit unauthorized companies from approaching UK customers.