Should DAOs also be registered for review? Hong Kong Legislative Council member Wu Jietzuang: Suggesting the government emulate the licensing of the securities industry.

This year, Hong Kong is handling the world's first decentralized autonomous organization (DAO) lawsuit, highlighting the legal and governance challenges faced by such new types of organizations. Hong Kong Legislative Council member Wu Jietzuang suggested that the Hong Kong government should establish a DAO regulatory framework as soon as possible to support the development of the Web3 ecosystem and attract global resources. (Background: A tweet raised 35,000 SOL; what is the AI-Pool presold by ai16zdao members?) (Additional background: A new chapter in DeSci! The Quantum Biology DAO has launched the $QBIO token, marking the first issuance by BIO Protocol). The Hong Kong High Court ruled on the world's first DAO lawsuit in August this year, marking the entry of legal and compliance challenges faced by such new types of organizations into a substantial phase. With the continuous growth of the Web3 ecosystem, Hong Kong Legislative Council member Wu Jietzuang believes that Hong Kong should quickly formulate a regulatory framework for DAOs to promote the development of the digital economy. The first DAO lawsuit has raised regulatory demands. In August this year, the Hong Kong High Court heard the world's first case involving a DAO, ruling that the defendant must disclose detailed financial data of the blockchain and real-world asset tokenization (RWA) projects in response to asset misappropriation allegations, with the amount involved exceeding 6 billion HKD. This incident highlights the legal risks and governance gaps that DAOs may face during their operations. DAOs operate based on blockchain smart contracts, without centralized hierarchies; members participate in governance and decision-making by holding tokens. However, under the current legal system, DAOs lack a clear legal entity status, which has become a significant obstacle to their development. DAOs are growing rapidly and need to improve the regulatory framework. Wu Jietzuang, the chairman of the Legislative Council and the Web3 development committee, pointed out that there are currently 200,000 DAOs globally, and this number continues to grow. If Hong Kong wants to become a Web3 hub, it should quickly establish relevant regulations to attract DAO projects. Wu Jietzuang stated: "Currently, public chain projects in the form of DAOs are like 'unowned souls', difficult to find an appropriate home globally. If Hong Kong can provide a compliance framework, it will effectively attract these organizations to develop in Hong Kong and even pay taxes." He added that many DAO projects cannot connect with traditional financial systems due to a lack of legal status; establishing a regulatory framework will facilitate cooperation between DAOs and banks and other financial institutions. Suggestions to refer to the securities industry for establishing a licensing system. Wu Jietzuang suggested that the Hong Kong government could refer to the regulatory model of the securities industry to introduce a licensing system for DAOs. This system would require DAOs to clarify their internal organizational structure and establish a Responsible Officer (RO) to ensure compliance with regulatory requirements and maintain normal operations. He emphasized that if Hong Kong can quickly formulate a legal framework, it will help attract funds, technology, and talent, promoting the comprehensive development of the Web3 ecosystem. Currently, the United States and Abu Dhabi have established relevant regulations to manage the operation of DAOs. If Hong Kong can follow suit, it will further enhance its competitiveness in the global digital asset field and become a core of regional digital economic development. Related reports: A tweet raised 35,000 SOL; what is the AI-Pool presold by ai16zdao members? A new chapter in DeSci! The Quantum Biology DAO has launched the $QBIO token, marking the first issuance by BIO Protocol. Dissatisfaction with LDO losses leads to a lawsuit; the U.S. court ruled: Lido DAO is a partnership, and participating members in governance are responsible. "Should DAOs also be registered for review?" says Hong Kong Legislative Council member Wu Jietzuang: Suggesting the government emulate the licensing of the securities industry. This article was first published in BlockTempo (the most influential blockchain news media).