The Law Commission for England and Wales, which reviews and recommends changes to the law to the UK government, said it does not recommend a new legal framework for decentralized autonomous organizations (DAOs) because they may be subject to existing regulations that require companies to obtain authorisation to operate in the UK. DAOs may be subject to the Financial Services and Markets Act 2000 if they engage in "specific activities" related to "specific investments", the independent statutory body wrote in a paper published on Thursday. Governance tokens are considered specific investments when they look like shares, grant voting rights and are issued in exchange for investing in DAOs. Token advertising may be subject to promotional rules that prohibit unauthorised companies from accessing UK customers.