The post Hong Kong Lawmaker Pushes DAO Rules Amid MANTRA Case appeared on BitcoinEthereumNews.com.

Hong Kong explores DAO regulation for Web3 stability and investor attraction. Johnny Ng advocates Bitcoin inclusion in Hong Kong’s financial reserves. Hong Kong lawmaker Johnny Ng Kit-chong has proposed creating a legal framework to regulate decentralized autonomous organizations (DAOs) to bolster Hong Kong’s stability in the Web3 investment landscape. Ng believes that such regulation would attract significant overseas talent and capital, reinforcing the city’s position as a global leader in digital finance. This suggestion follows a recent landmark ruling by the Hong Kong High Court, which ordered six key figures involved in the MANTRA DAO project to disclose financial records. The court’s decision came in response to allegations of misappropriation involving assets worth HK$6 billion.  Meanwhile, the defendants argued that the DAO’s token holders, not the company, owned these assets. They emphasize the decentralized nature of DAOs. Despite these arguments, court-mandated transparency highlights the importance of legal oversight even in decentralized operations. Ng views this ruling as a significant precedent, marking the world’s first judicial examination of a DAO. He underscored the growing importance of DAOs, which operate through blockchain-based smart contracts, for decision-making and management. According to Ng, this case exemplifies that Web3 entities, despite their decentralized structure, remain subject to the rule of law. Ng Advocates For Bitcoin Lawyer Monin Ung clarified that the court focused solely on whether to issue a disclosure order, not on the merits of the claims. Nonetheless, the ruling mandates that the defendants provide financial information. And supporting documents, underlining the necessity for transparency in managing project accounts. Ng also recently announced plans to explore the potential of incorporating Bitcoin into Hong Kong’s financial reserves. In a post on X, Ng highlighted Bitcoin‘s increasing global recognition as “digital gold” and its potential as a hedge against inflation. He suggested that under appropriate regulatory…

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Filed under: News - @ August 20, 2024 10:24 am