Wu Jie Zhuang: Can strengthen Hong Kong's position as a global digital asset hub from three aspects: "DAO regulation, the legal validity of smart contracts, and DeFi regulatory framework."

Deep Tide TechFlow News, December 20 — Hong Kong Legislative Council Member Wu Jiezhuang posted on social media stating, “To further strengthen Hong Kong’s position as a global digital asset hub, I believe efforts can be focused on the following three areas:

DAO (Decentralized Autonomous Organization) Regulation - In November 2024, the world’s first DAO case will be heard and judged in Hong Kong courts, marking Hong Kong’s leading position in this area. Currently, there are over 100,000 DAOs worldwide managing assets worth hundreds of billions of dollars. Establishing a clear legal framework can provide industry guidance and attract more DAOs to set up in Hong Kong.

Legal Validity of Smart Contracts - It is necessary to clarify whether smart contracts can be regarded as legally binding agreements, and to establish governance structures equipped with “emergency response mechanisms” to handle unforeseen situations.

DeFi (Decentralized Finance) Regulatory Framework - While implementing the principle of “same business, same risk, same rules,” it is also important to consider the unique operational models of DeFi. Approaches can include clarifying legal definitions, ensuring smart contracts have safeguard mechanisms, and strengthening international regulatory cooperation.