Hong Kong Legislative Council member Wu Jiezhuang suggested that the SAR government establish a DAO licensing system based on the securities industry

In August this year, the Hong Kong High Court heard the world's first lawsuit involving a "decentralized autonomous organization (DAO)" and ruled that six defendants must disclose detailed financial statements and supporting documents of blockchain and real-world asset tokenization (RWA) projects in response to allegations of asset misappropriation, involving more than 6 billion yuan. Wu Jiezhuang, chairman of the Hong Kong Legislative Council, Web3 and Virtual Asset Development Forum Committee, believed in an interview that the current development framework of Hong Kong in Web3 is still not perfect, and suggested that the SAR government introduce DAO regulatory regulations. He said that the entire digital asset ecosystem can be divided into two important links, one is the exchange, and the other is the public chain. The latter usually exists in the form of DAO, but like a "homeless soul", there is no place to land in the world. If Hong Kong wants to develop a digital asset ecosystem, it needs to regulate DAO as soon as possible and establish a framework for DAO so that these public chains can land in Hong Kong. He revealed that the industry has reflected that if there is a compliance framework dedicated to DAOs, they are willing to land in Hong Kong and even pay taxes, "because they can't do many things at present, such as being refused funds by banks, so they all want to float to the surface and get legal status and connect with traditional finance." Wu Jiezhuang continued that the United States and Abu Dhabi currently have relevant legal frameworks to regulate DAOs, and Hong Kong should also establish them as soon as possible. Since DAOs have no legal entity, it is recommended that the SAR government can refer to the current securities industry licensing system and establish a DAO licensing system, requiring licensed DAOs to clarify internal individual relationships and establish responsible personnel (RO) to ensure that licensed companies comply with the regulations of regulatory agencies and maintain the company's daily operations. (Wenhui.com)