In an effort to turn Hong Kong into a worldwide Web3 hub, Ng, a member of the Legislative Council, told local media on Monday that the government ought to create a legal framework for running DAOs.

Ng’s comment follows a court’s decision last week ordering six defendants to reveal bank information linked with Mantra DAO, Hong Kong newspaper The South China Morning Post said, based on justifications. In this instance, the defendants contended that ownership resides with token holders, whereas the plaintiffs claimed that the defendants stole DAO project funds.

DefiLlama data shows that Mantra DAO’s market capitalization right now is $740 million, while on July 22, it was $1.1 billion. The legislator also said the case might be a major legal precedent for the Web3 sector. Ng has earlier urged simpler banking access for Hong Kong’s crypto companies.

Last year, Hong Kong laid out the welcome mat for cryptocurrency companies; in June 2023, it formally launched a crypto licensing system for trading platforms, therefore enabling approved exchanges to provide retail trading services.

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