Hong Kong Legislative Council member Wu Jiezhuang suggests the SAR government refer to the securities industry to establish a DAO licensing system

Odaily Planet Daily News - In August this year, the High Court of Hong Kong heard the world's first lawsuit involving a 'Decentralized Autonomous Organization (DAO)' and ruled that six defendants must disclose detailed financial statements and supporting documents for their blockchain and Real World Asset (RWA) tokenization projects in response to allegations of asset misappropriation, involving over 6 billion HKD. The Chairman of the Legislative Council of Hong Kong, Web3, and Virtual Assets Development Forum Committee, Wu Jiezhuang, believes in an interview that the current development framework for Web3 in Hong Kong is still not完善, suggesting that the SAR government introduce regulations for DAO. He stated that the entire digital asset ecosystem can be divided into two important segments: exchanges and public chains, with the latter often existing in the form of DAOs, but like 'wandering souls' lacking a place to land globally. If Hong Kong wants to develop a digital asset ecosystem, it must quickly regulate DAOs and establish a framework for them, allowing these public chains to settle in Hong Kong. He revealed that the industry has reflected that if there is a dedicated compliance framework for DAOs, they would be willing to settle in Hong Kong and even pay taxes, 'because currently they cannot do many things, such as being denied access to funds by banks, so they want to surface and obtain legal status to connect with traditional finance.' Wu Jiezhuang further pointed out that the United States and Abu Dhabi already have relevant legal frameworks to regulate DAOs, and Hong Kong should also establish one as soon as possible. Since DAOs do not have legal entities, he suggested that the SAR government could refer to the current licensing practices in the securities industry to establish a DAO licensing system, requiring licensed DAOs to clarify internal relationships and establish responsible officers (RO) to ensure that licensed companies comply with regulatory agency rules and maintain daily operations. (Wenhui Network)