Hong Kong lawmaker Johnny Ng Kit-chong has called for a legal framework to regulate decentralized autonomous organizations ( DAOs) to boost Hong Kong’s Web3 investment landscape. Ng said a recent High Court ruling underscores the rule of law in Web3 operations and sets a significant legal precedent.
Hong Kong Lawmaker Calls for DAO Regulation to Boost Web3 Investments
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The Mantra Chain Case
A Hong Kong lawmaker, Johnny Ng Kit-Chong, has urged the region’s government to create a legal framework to regulate decentralized autonomous organizations ( DAOs). With such a legal framework, he argued, Hong Kong would enhance its Web3 investment landscape, attracting significant overseas talent and capital.
According to a report, Ng’s call for the creation of a DAO regulatory framework follows a recent High Court order for the disclosure of Mantra Chain’s financial details. In explaining its ruling, the court concluded that the application aimed to maintain the status quo pending trial by giving plaintiffs access to key financial details.
Mantra DAO Inc. and its infrastructure host, Riodefi, took legal action against the latter’s four ex-employees, who are accused of misappropriating the DAO’s funds. However, in their defense, the ex-Riodefi employees reportedly suggested that since the DAO has no beneficial owners, they should not be put to their defense.
Commenting on the court’s “landmark” ruling, Ng said the case shows that Web3 operations are subject to the rule of law.
“The court focused on whether a disclosure order should be issued, not on the merits of the claims,” Ng said.
The lawmaker added that the ruling sets an important legal precedent for the global Web3 ecosystem. He clarified, however, that the Mantra Chain case involves only a shareholder dispute and has so far not impacted the general public.
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