Hong Kong lawmaker calls for legal framework to regulate DAOs

by

As a seasoned researcher with a keen interest in the intersection of law and technology, I find Johnny Ng Kit-chong’s advocacy for clear regulations surrounding decentralized autonomous organizations (DAOs) both insightful and timely. His life experience as a Hong Kong lawmaker positions him uniquely to understand the complexities and potential of this rapidly evolving sector.

In simpler terms, a lawmaker from Hong Kong has proposed establishing laws to control Decentralized Autonomous Organizations (DAOs), due to a recent court decision concerning such a group.

It’s possible that Hong Kong could start creating guidelines for Decentralized Autonomous Organizations (DAOs), as legislator Johnny Ng Kit-chong pushes for more defined regulations to enhance stability within the web3 industry.

As per a report from the South China Morning Post, Ng, who is part of the Legislative Council, proposes creating a legal structure would potentially boost the area, as it could draw global expertise and investments, further solidifying Hong Kong’s role amidst the fast-changing world of cryptocurrencies.

In an effort to foster the growth of Web3 technology and digital assets within Hong Kong, the Legislative Council of the Hong Kong Special Administrative Region (HKSAR) has recently set up a Subcommittee dedicated to the development of Web3 and virtual assets. My team aims to collect perspectives from experts in the international Web3 sector, suggest policy guidelines, and…

— Johnny Ng 吴杰庄 (@Johnny_nkc) June 22, 2024

Previously, Ng has advocated for a clear regulatory framework regarding DAOs on multiple occasions. Just this past July, he openly expressed the need for well-defined policies and regulatory guidelines to foster and govern the growth of these organizations within Hong Kong.

Meanwhile, a new court ruling has emerged, following closely on the heels of an event that Ng called a “significant milestone” as it represents the world’s initial judicial investigation into a DAO. The High Court of Hong Kong instructed six defendants involved in the Mantra DAO case, which accuses them of misusing HK$6 billion (roughly $767 million), to reveal their financial records.

I’d like to see if the government can enhance the environmental sustainability of web3 and establish legal frameworks for Decentralized Autonomous Organizations (DAOs), which would encourage more professionals within the field to base their projects in Hong Kong, attracting investment and expertise.

Johnny Ng Kit-chong

For quite some time, Ng has been a strong advocate for cryptocurrency-friendly laws in Hong Kong. Just recently, it was reported by crypto.news that Ng underscored the importance of Hong Kong stepping up its efforts in the cryptocurrency industry, focusing on broadening virtual banking services. This is especially crucial as web3 startups are encountering difficulties in obtaining financial services.

In a proposal, Ng suggests that virtual banks should prioritize serving web3 companies more effectively, thereby boosting the advancement of Hong Kong’s digital infrastructure. He emphasizes that policies concerning virtual assets are currently a hot topic in international governmental discussions.

Read More

2024-08-20 11:38