How can Hong Kong further strengthen its position as a digital asset hub? Three major areas to breakthrough: DAO, DeFi, and smart contracts

Question

【Crypto World】Hong Kong has new ideas for Web3 regulation. Recently, industry insiders pointed out that Hong Kong can further strengthen its position as a global digital asset hub by focusing on three key areas.

First is the development of a regulatory framework for DAOs. In November 2024, the world’s first DAO case will be heard and judged in Hong Kong courts, giving Hong Kong a first-mover advantage in this area. Currently, there are over 100,000 DAO organizations worldwide managing assets worth hundreds of billions of dollars. If Hong Kong can quickly establish a clear legal framework, it will not only guide the industry but also attract more DAO ecosystems to establish roots here.

Second is the legal recognition of smart contracts. The key issue now is whether smart contracts can be legally recognized as binding agreements. This needs to be clarified from a legal perspective. At the same time, a governance system that includes emergency response mechanisms should be established to handle unexpected situations promptly.

Finally, the design of a regulatory framework for DeFi. While adhering to the principle of “same business, same risk, same rules,” it is also important to consider the unique operational characteristics of DeFi. This can start with clarifying legal definitions, ensuring smart contracts are equipped with security measures, and strengthening international regulatory cooperation.

Advancing these three areas could be crucial for Hong Kong to solidify its position as a Web3 hub.

ForkLibertarian · Accepted Answer

Hong Kong's move was indeed the right one. DAO precedents took the lead, now it depends on whether the legal framework can keep up.

Smart contracts are truly the difficult part. Code is law sounds cool, but in reality? Who's responsible if there's a bug?

Hundreds of billions managed by a hundred thousand DAOs—this cake is indeed tempting. No wonder everyone is envious.

Someone should have sorted these issues out long ago. It's been dragging on for so long, it's just frustrating.

But on the other hand, if Hong Kong's framework really gets implemented, how will other places follow?

UncommonNPC · Answer

Hong Kong's move is good, but the real test is in execution. Where will the hundred thousand DAOs be placed? Is the framework the priority or the ecosystem?

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Legal recognition of smart contracts is easy to talk about but extremely difficult to implement. Can the traditional legal community understand code logic?

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Hundreds of billions of dollars in the cake, Singapore and the UAE have long been eager to seize it. Hong Kong needs to accelerate.

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The DAO case has been judged, but will this become a nightmare for some project teams? Rules are a double-edged sword.

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The core issue is still talent mobility. No matter how perfect the framework is, without talent, it's useless.

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Legal validity of smart contracts? How many years of civil code would that take to change? Just thinking about it gives a headache.

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Talking about three major directions, but the content of the results isn't finished? Trying to tease our appetite.

PositionPhobia · Answer

Hmm... Hong Kong is really trying to seize the DAO trend this time.

Once the DAO framework is clarified, it can truly attract funds. The question is whether the execution can keep up.

Legal recognition of smart contracts is the real challenge. What if problems arise then?

It feels like it's mostly on paper again.

A hundred thousand DAOs managing hundreds of billions—if this plan really lands in Hong Kong, I would be excited.

But don't just talk about it; it depends on the actual progress. Armchair strategies are pointless.

GasFeeCrier · Answer

Hong Kong's move is truly aggressive. The world's first DAO legal case is here, directly locking in the narrative.

The key issue is the legal recognition of smart contracts. Without resolving this fundamental problem, any frameworks developed later are just paper tigers.

A hundred thousand DAOs managing hundreds of billions—once this number comes out, Singapore won't be able to sit still.

HodlOrRegret · Answer

Hong Kong's move is quite interesting, but are those hundred thousand organizations in the DAO really reliable? It always feels like there's a lot of water content.

Matters legally recognized by smart contracts depend on how Hong Kong courts rule; otherwise, it's all just talk on paper.

DeFi is the real test of regulatory wisdom; a slight misstep can turn it into a risk hotspot.

If Hong Kong can really establish a framework this time, Singapore will be panicking, haha.

Speaking of which, laws always lag behind technology, and that's a perennial challenge.

Hong Kong wants to become a center; it must first fill these gaps, or it will still be a paper tiger.

Hundreds of billions of dollars in assets—are they just bragging or is it real? Needs verification.

A clear regulatory framework is indeed attractive, but the key is execution; don't let it be just PPT policies.

It still seems to rely on market-driven forces; regulatory agencies can't keep up with the pace.

TokenStorm · Answer

Hong Kong's move is quite good, but the key still depends on whether the framework can be truly implemented. The risk factor for DAO is actually quite high.

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100,000 DAOs, hundreds of billions of USD—these numbers look impressive, but on-chain data shows that the truly active ones are not that many. Arbitrage opportunities are actually a problem.

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Regarding the legal validity of smart contracts, honestly, it's a gamble on whether regulators can keep up with technological progress. I bet they can't.

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If Hong Kong really manages to succeed, I would go all-in and move there. But I say this every year, only to be educated by reality each time.

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Let's backtest historical data. Every time a new framework appears, it's short-term FOMO. In the long run, it's still about execution. This time shouldn't be an exception.

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What about practical issues like miner fees and gas costs? It seems like only positive news is heard, but no one mentions where the storm eye is.

fren_with_benefits · Answer

Hong Kong this time really has something, the DAO ruling has been implemented, which is a real advantage.

Managing hundreds of billions with ten thousand DAOs is just mind-blowing, Hong Kong needs to act quickly to grab this opportunity.

The legal recognition of smart contracts, that's correct, the whole world is exploring this now.

Once the framework is established, ecosystem influx is inevitable.

But it depends on how efficient the execution is; don't let it become just a paper tiger again.

I'm optimistic about Hong Kong's move; finally showing some courage.

How to judge if a contract malfunctions is a crucial detail.

All three directions hit the mark, now it depends on how they respond next.

Anyone who has experienced the Hong Kong Stock Exchange understands that this time Web3 has a chance to overtake on a curve.

A clear legal framework can retain funds; this logic is sound.