Hong Kong Lawmaker Calls for DAO Regulation

Johnny Ng, a Hong Kong lawmaker, urged the government to explore regulating decentralized autonomous organizations (DAOs) following a High Court ruling that mandates defendants to disclose financial records related to a DAO project.

Ng, a member of the Hong Kong Legislative Council, expressed that the government should introduce a legal framework for DAOs to position Hong Kong as a global Web3 hub.

This statement follows a court ruling that ordered six defendants to disclose financial records connected to Mantra DAO, where plaintiffs accused misappropriation of the DAO’s assets, while defendants claimed ownership lies with token holders.

Currently, Mantra DAO has a market cap of approximately $740 million, down from $1.1 billion in July, according to DefiLlama data.

Ng emphasized that this case could set a significant legal precedent for the Web3 industry and has previously advocated for improved banking access for crypto firms in Hong Kong.

In 2022, Hong Kong welcomed crypto firms, and by June 2023, it implemented a licensing regime for crypto trading platforms to facilitate retail trading services.