Hong Kong Legislative Council member Wu Jietzhuang: Suggests the SAR government refer to the securities industry to establish a DAO licensing system

ChainCatcher news, in August this year, the Hong Kong High Court heard the world's first lawsuit involving "Decentralized Autonomous Organizations (DAO)", ruling that six defendants must disclose detailed financial statements and supporting documents for their blockchain and Real World Asset (RWA) projects in response to allegations of asset misappropriation, involving over 6 billion HKD. Wu Jiezhuang, Chairman of the Hong Kong Legislative Council, Web3 and Virtual Asset Development Forum Committee, believes that the current development framework for Web3 in Hong Kong is still not完善, and suggests that the SAR government introduce regulations for DAO.

He stated that the entire digital asset ecosystem can be divided into two important segments: one is exchanges, and the other is public chains, which usually exist in the form of DAOs but are like "orphaned souls" without a place to land worldwide. If Hong Kong wants to develop a digital asset ecosystem, it needs to regulate DAOs as soon as possible and establish a framework for DAOs so that these public chains can land in Hong Kong.

Wu Jiezhuang further pointed out that the United States and Abu Dhabi already have relevant legal frameworks regulating DAOs, and Hong Kong should 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 individual relationships and to establish Responsible Officers (RO) to ensure that licensed companies comply with regulatory requirements and maintain daily operations.