According to local media, a Hong Kong lawmaker called Johnny Ng is urging a legal framework that regulates DAOs after a ruling by the High Court ordered the defendants to reveal financial records related to a DAO project. Hong Kong Legislative Council legislator Ng said local authorities should provide a legal framework for the DAO operation to build the city into a global Web3 hub on Monday.
He spoke on Monday following last week’s reasoning by that court, which ordered six defendants to produce financial information related to Mantra DAO, the South China Morning Post in Hong Kong reported. The plaintiffs claimed that the defendants misappropriated the assets of the DAO project, while the latter held that ownership belonged to the token holders. The market cap of Mantra DAO stands at $740 million now, as against $1.1 billion as of July 22, as per DefiLlama.
He further added that it was likely to be an important precedent event for the Web3 industry. He had earlier called for easier access to banking in Hong Kong for crypto firms. This comes after Hong Kong rolled out the red carpet for crypto firms last year and opened an official cryptocurrency licensing regime for crypto trading platforms in June 2023, allowing licensed exchanges to offer retail trading services.