HashKey Capital Brings Digital Assets Closer to Mainstream Institutional Adoption

How do we move beyond the wild west and into a more stable, safe, & comfortable industry?

Many in the Web3 community believe that the best way to create mainstream adoption for crypto is to ensure mainstream regulation. This only makes sense, as the biggest fear for traditional investors is that digital assets are still in a “Wild West” phase of maturity.

While this has led to some major returns, it has also resulted in some major crashes, scams, and thefts. And with a bear market, the risk for many is just too high.

So how do we move beyond the “Wild West” and into a more stable, safe, and comfortable industry? For many Web3 platforms the answer is to gain mainstream regulatory approvals.

For the team at HashKey Capital, this effort goes even further, and they have been proactively working with regulators to pave the way for digital assets to have a place in the mainstream investment ecosystem.

Key Milestones

The HashKey Capital leadership recently announced at the Singapore Fintech Festival 2022 that the Monetary Authority of Singapore awarded the platform an in-principle approval for a Capital Markets Services (CMS) license. This will allow HashKey Capital to become a licensed fund management company (LFMC), meaning that it can perform fund management services.

During the announcement, HashKey Capital Capital Singapore CEO Deng Chao discussed why this approval is key not just for HashKey Capital, but for the larger Web3 community as a whole:

“Singapore is quickly becoming the region's epicentre of Web3 innovation. Being recognised by the MAS as a licensed fund management company will allow HashKey Capital Capital Singapore to contribute to and support the local Web3 community, which is considered a significant accomplishment for us.” He added, “Once the CMS license is granted, HashKey Capital Capital will be able to offer its services to institutional and accredited investors.”

Being able to service institutions is groundbreaking and is a major step to showing that Web3 investing can be well regulated, which means it can be an industry without a high risk of misconduct, fraud, and theft.

Regulations are meant to protect the rights of investors big and small, and HashKey Capital has worked hard to make this happen. It is highly likely that their accomplishment will lead the way for others in the industry to work toward these same goals, which will build up the Web3 ecosystem in the eyes of institutions ready to participate in these markets.

This is not, however, the first milestone toward mainstream adoption for HashKey Capital. They have been awarded an uplift of their Type 9 license in Hong Kong, given by the Securities and Futures Commission.

This enables the company to now manage a portfolio containing all digital assets. Adding to their legitimacy in Singapore, the company was the first blockchain VC to be awarded the “Recognized Investment Firm” title, given by the Singapore’s Tech@SG programme.

This programme was developed to hand pick high performing, fast growing organizations that have a lot to offer the community, giving them extra endorsements and credentials to attract top talent from the Singapore area.

Looking Ahead

Wise Web3 platforms should be taking note, as HashKey Capital is providing a key blueprint to follow. It is important too that the larger Web3 community work together as one organization to make this critical shift, pursuing mainstream regulation instead of at best ignoring it and at worst avoiding it. Doing so has caused significant damage to the industry, and it will take enough platforms working with regulators to reach that critical tipping point toward mass adoption.

HashKey Capital has shown it is possible, and with any luck, a year from now the Web3 will look significantly different as it is healthier, stronger, and exponentially larger thanks to proper regulation.