SNEAK PEEK
Hong Kong lawmaker Johnny Ng pushes for DAO regulation to boost Web3 investments.
Mantra Chain case sets a legal precedent for DAO transparency in Hong Kong’s High Court.
Ng emphasizes the rule of law in Web3 operations, highlighting the need for clear DAO regulations.
Hong Kong lawmaker Johnny Ng Chong is advocating for a legal framework to regulate decentralized autonomous organizations (DAOs) in an effort to bolster the region’s Web3 investment environment. Ng emphasized that establishing clear regulatory guidelines would attract international talent and investment to Hong Kong, positioning the city as a leader in the global Web3 ecosystem.
Ng’s push for DAO regulation follows a recent High Court decision involving Mantra Chain, a decentralized finance platform. The court ordered the disclosure of Mantra Chain’s financial details in response to a legal dispute between Mantra DAO Inc. and its infrastructure provider, Riodefi. The case centres on accusations that four former Riodefi employees misappropriated funds belonging to the DAO.
The ex-workers protested that the DAO, by its setup without traditional ownership structures, wouldn’t be held to the same laws as a conventional setup—for true. But the court found that the disclosure was necessary to maintain the status quo, as opposed to validating the merits of the claims.
Ng noted that the key aspect of the ruling was the underwriting of the rule of law as far as Web3’s operations were concerned. According to him, the ruling had not really given any merit to the case, but it was of the essence that the legal processes in cases involving DAOs be made public.
According to Ng, this decision sets an important legal precedent for the global Web3 ecosystem, demonstrating that Web3 entities are not beyond the reach of traditional legal frameworks.
Ng clarified that the Mantra Chaincase is specific to a shareholder dispute and has not had broader implications for the general public.
He did, however, mention that a full legal framework was needed so that DAOs and other Web3 entities could ensure safe and transparent operations within Hong Kong, which in turn would deepen investment and innovation in the sector.
The post Hong Kong Lawmaker Advocates for DAO Regulation to Strengthen Web3 Sector appeared first on Today NFT News.
