DAO1 under pressure: New projects despite international warnings

DAO1, a blockchain project claiming community participation and technological innovation, is coming under increasing regulatory fire internationally. While new products such as AI-based investment advice and a venture fund for start-ups are being unveiled, several regulatory authorities have publicly warned against the business model and drawn parallels to already known structures from the crypto sector.

Regulatory warnings from Australia, New Zealand and North America

The Australian financial regulator ASIC was particularly vocal in its recent statement. In its announcement on 2 February 2025, it stated that DAO1 was operating in Australia without the necessary financial services licence – a potential violation of applicable financial law. The authority expressly advised potential investors to exercise caution.

Earlier, on 30 January, the New Zealand Financial Markets Authority (FMA) had already placed DAO1 on its public warning list. It cited the lack of an entry in the official Financial Service Providers Register, excessive return promises and a lack of transparency regarding key project information as reasons for its decision.

Regulatory authorities in North America also reacted: according to information from the Alberta Securities Commission, DAO1 is not authorised to distribute financial products in the United States and Canada. According to publicly available materials from GSB – a company from which DAO1 is said to have emerged – corresponding distribution activities there have been discontinued.

Project continuity or strategic rebranding?

Some industry observers do not see DAO1 as an entirely new project, but rather as a strategic realignment or renaming of an existing network. Publicly available research establishes a connection with GSPartners, a company that is under investigation in several countries for alleged illegal sales practices.

At the centre of this debate is Josip Heit, founder of the GSB Gold Standard Group. Research by several independent sources suggests that Heit also plays a key role behind DAO1 – although this has not yet been officially confirmed. Heit has been linked in the past to ambitious crypto and sales projects that have been investigated by authorities in the United States, among other places.

New products despite regulatory headwinds

Despite this history and clear regulatory warnings, DAO1 is announcing further products. Among other things, it plans to introduce a governance token via the YFDAI launchpad, accompanied by a listing on the decentralised exchange Uniswap.

A so-called ‘hybrid advisory’ system is also in the works – according to DAO1, an AI-powered platform for evaluating blockchain projects. In addition, a ‘Crypto Venture & Startup Fund’ is to be launched, allowing community members to participate in early-stage projects. How these investments are structured and legally secured remains unclear at this stage.

Conclusion: High risks and unanswered questions

The simultaneous introduction of new financial products amid growing regulatory criticism should urge potential investors to exercise caution. The documented warnings from international authorities speak for themselves: DAO1 operates in several countries without any apparent licensing, using a model that is partly reminiscent of well-known high-risk structures.

The combination of a lack of transparency, aggressive marketing and structural similarities to networks that have already been criticised suggests that investors should exercise particular caution here.

Note: As always, those affected are welcome to comment, or if anyone has more or different information, please feel free to share it with us. We are not interested in making false claims and our primary goal remains to provide complete documentation.

Sources:

1. Australian Securities and Investments Commission (ASIC): DAO1 warning – 2 February 2025
2. Financial Markets Authority (New Zealand): DAO1 warning – 30 January 2025
3. Research from publicly available sources on DAO1, GSPartners and Josip Heit
4. DAO1 website: Product announcements ‘Hybrid Advisory’ & ‘Startup Fund’
5. AICoin: YFDAI launchpad announcement
6. Alberta Securities Commission (Canada)

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