HSK WHITEPAPER

HashKey EcoPoints

1. INTRODUCTION

2. ABOUT HASHKEY

3. ABOUT HSK

CONTENTS

Chapter 1: Introduction 3

1. INTRODUCTION

Blockchain technology is revolutionizing the world: from internet to blockchain; the

right-to-own to the right-to-use; from shareholder to stakeholder; stock trading to

digital asset trading; infrastructure development to mass-adoption. The recognition

of the intrinsic value of digital assets signals the strong growth potential for the

industry.

2022 has been an unprecedented year for Blockchain and digital assets, particularly

in the context of compliance and evolving regulations. As the industry-leading digital

asset and blockchain service provider, HashKey believes that the era of licensed

digital asset platforms will be a trend that dominates globally for many years to

come, and that true regulatory-compliance of digital assets is the key to sustainable

success.

A pivotal moment for mass adoption

Chapter 1: Introduction 4

HashKey is dedicated to promoting the adoption of regulated infrastructure across

the core Asian and global financial centers to drive the integration of real-world and

digital assets, merging the two economies into one. By offering regulatory compliant

products and public infrastructure, HashKey is well-positioned to drive mass

adoption and be a key player in the rapidly evolving digital asset space.

At the forefront of this our mission is the HashKey PRO platform, a brand-new,

comprehensively regulated virtual asset exchange that prioritizes compliance, safety,

and security above all standards.

Regulatory compliant products and public

infrastructure in Web3 ecosystem

At HashKey we believe that Web3 and real-world economies will eventually become

one, with digital assets existing alongside all other traditional asset classes such as

stocks, bonds, precious metals, and real estate. The goal is the creation of a more

efficient, transparent, and inclusive financial system.

HashKey’s mission is to bridge the gap between these Web3 and real-world

economies. Our goal is to develop both the regulated platforms and public

infrastructure that facilitate the usage of blockchain technology across existing

financial infrastructure. HashKey is dedicated to bringing the potential of Web3 into

everyday life and further expanding on its positive global impact.

OUR VISION:

Web3 and real-world economies become one

Chapter 2: About Hashkey 5

2. ABOUT HASHKEY

Founded in Asia in 2018, HashKey is a renowned Web3 ecosystem developer and leading digital asset group.

Today, HashKey provides a complete ecosystem of products and services relating to digital assets including

a regulated exchange , custody, brokerage, venture capital, asset management, node-validation services and

as well as additional Web3 infrastructure. HashKey is committed to becoming a globally recognized and fully

regulated digital asset ecosystem.

SECURITY FIRST

• ISO 27001 certification for HashKey PRO

(Information security management)

• ISO 27701 certification (Privacy Information

Management System) for Exchange and

Brokerage businesses

• Smart contracts for Hashkey’s token

projects independently audited by Xiamen

SlowMist Technology Co., Ltd.

• Proof of Reserves for HashKey PRO

• KPMG & PwC audited (Internal control,

security, and group level financials)

• Client funds are protected by institutional

custody grade insurance

Hong Kong

Exchange & Custody

 Type 1 (Dealing in securities) & 7

(Providing automated trading services)

licenses issued by the Securities and

Futures Commission (“SFC”) with

approval to operate a digital assets

trading platform

 Trust or Company Service Provider

Licence issued by the Companies

Registry for the provision of custody

services

Asset Management

 Type 9 (Asset management) license

(with uplift approval to manage

portfolios investing up to 100% in

digital assets) issued by the SFC

REGULATORY COMPLIANCE

Singapore

Brokerage / OTC trading

 Applying for a Major Payment

Institution Licence for the provision of

Digital Payment Services to be issued

by the Monetary Authority of Singapore

(“MAS”). Currently operating under a

licensing exemption under the

Payment Services Regulations

Asset Management

 In-principle approval received for a

Capital Markets Services Licence for

fund management to be issued by the

MAS

Japan

Brokerage & Exchange

 Registration as a crypto asset exchange

service provider with the Japan Financial

Services Agency

REGULATORY

COMPLIANCE

COMPREHENSIVE

ECOSYSTEM

SECURITY

FIRST

HashKey may at its discretion change the scope and availability of its services and products. Please refer to HashKey’s official communica-

tions channels for the most updated guidance.

• One-stop solution provider for digital asset

trading, custody, brokerage, venture capital,

asset management and node-validation

services, and other Web3 infrastructure

• DeFi and CeFi strategy in place

COMPREHENSIVE ECOSYSTEM

Chapter 2: About Hashkey 6

Comprehensive Ecosystem

Across the Digital Asset Landscape

Headquartered in Hong Kong with operations in Singapore and Tokyo, HashKey offers a

comprehensive ecosystem across the digital asset landscape:

Licensed

Exchange & Brokerage

Venture Capital,

Asset Management

& Incubator

Insured &

Secured Custody

Infrastructure Services,

Node Validation Services

DeFi Wallet,

Decentralized KYC,

Compliant DEX

Chapter 3: About HSK 7

3. ABOUT HSK

3.1 HSK Overview

Name

HSK – HashKey EcoPoints

Distribution mechanism

 Incentive-based fair distribution to ecosystem users and contributors

 Not sold via private or public sales for fund raising purposes

Blockchain protocol

Ethereum

Standard

ERC-20

Tot al s upp ly

1,000,000,000 HSK (1 billion)

HSK powers the entire HashKey ecosystem, with its utility expanding in the future via various

usage benefits across HashKey’s current and future business lines.

At HashKey we believe in the shared value created by adopting a versatile business model, which

can all serve different purposes in helping Web3 businesses engage and support its loyal user

base over time, creating a true stakeholder economy.

HSK is designed to fuel the regulated products and infrastructure across the HashKey

ecosystem, which can be accomplished via establishing an open-source community,

incentivizing developers and users to contribute to the community's growth in a decentralized

and trustless setting. As the platform loyalty reward, HSK will be used to create real usage

benefits in HashKey’s exchange and further across HashKey’s ecosystem.

Chapter 3: About HSK 8

3.2 HSK’s Utility

Through providing various use cases for HSK across our ecosystem, HSK is designed to incentivize

contributors to the HashKey ecosystem, including its users and partners. Potential benefits holders of HSK

will be entitled to include:

* The above is for illustrative purposes. We make no representation or warranty on HSK being distributed to users of these potential services

and products. The availability of these utility is subject to our future official announcements.

 Research Report Release

 Trading fees discount. Trading fees settled in HSK

are discounted up to 0% on maker fees

 Withdrawal fees waiver for selected digital assets

 Early access to future new token subscriptions

 Early notifications and access to new product and product upgrades

 Pay for on-chain verifiable credential

service fees

 Pay for limited edition NFTs and

AI-generated avatars

 Custody fee discount or waiver

 Trading fees discount

 Exclusive token private sales access

 Access to market maker program

 Voting power for sound Web3 projects listing

 Increased airdrop distribution weight from partner projects

(in development)

 Increased node validation service rewards

Supply Model

HSK has a supply capped at 1 billion units. HSK’s supply model is designed on a simple principle: issue new

HSK only in relation to real economic activity.

This principle ensures that HSK is issued only when HashKey’s underlying businesses are performing. For

example, new HSK will be issued into the overall HSK circulating supply via a Total Rewards Pool. The size

of this Total Rewards Pool in USD terms is capped in relation to net profits generated by HashKey’s related

businesses – a “Reward Value Cap”. The Reward Value Cap will be set based on a multiple of generated net

profits. This measure helps to ensure that new issuance is done in a fiscally responsible way.

HashKey will evaluate the multiple and the value of this Reward Value Cap on a frequent basis in response to

market conditions and communicate all circulating supply changes to HSK holders regularly.

HSK’s supply model also adopts a burn mechanism. HashKey will have the discretion to take 20% of net

profits earned from HSK-participating businesses and use these funds to purchase HSK, then burn the

acquired HSK from the outstanding supply. Longer-term, this supply model is designed so that the pace of

burning has the potential to exceed the pace of new issuance, leading to a more deflationary asset model in

the future.

HSK’s supply increases mostly from two allocation pools: the Ecosystem Growth Pool and the Team Pool.

The Ecosystem Growth Pool is further sub-divided into different distribution programs.

3.3 HSK’s Supply

65% | 650m HSK

ECOSYSTEM GROWTH

 Rewards

 Marketing

 Business Development

30% | 300m HSK

TEAM

 Staff incentives

5% | 50m HSK

RESERVE

 Additional protection for ecosystem

users for contingency purposes

Chapter 3: About HSK 9

Chapter 3: About HSK 10

HSK will be allocated to reward users who have contributed to the growth of the HashKey ecosystem.

For example, HSK will be minted and distributed from the Ecosystem Growth Pool for:

Early user incentive rewards: incentivize early users that sign up and transact on HashKey PRO

Trading and liquidity rewards: incentivize users that trade and provide liquidity on HashKey PRO

Other Contributor’s rewards: rewards users who contribute to the growth of the business

Ecosystem Growth Pool

Ecosystem Reward Programs

HSK will be allocated for marketing activities to drive brand awareness, user acquisition and community

growth.

Marketing

HSK will be used to incentivize the growth of the ecosystem with new partners and projects.

Business Development

HSK will be distributed as rewards to HashKey staff that contribute to the business growth.

Team Pool

The reserve pool provides additional protection for ecosystem users for contingency purposes.

Reserve Pool

Chapter 3: About HSK 11

HashKey implements an offsetting issuance mechanism (burning) to protect HSK holders from the dilutionary

impact of rewards-based increases in HSK circulating supply.

To implement this mechanism, HashKey will have the discretion to purchase an amount of HSK equal to 20%

of net profits generated from specified HashKey platform businesses and then permanently burn the

purchased HSK from HSK’s supply. At launch, these specified businesses will include HashKey’s licensed

exchange (HashKey PRO), with additional business lines and products to follow.

3.5 Burning

3.4 Launch Timeline

Announcement

of the HSK

Rewards Program

Announcement

Minting HSK

First Free

Distribution

Minting & First

Free Distribution

First

Trading Day

Subsequent

Distribution &

Subsequent

Trading

Listing & Trading

Warning

THIS WHITEPAPER COMPRISES INFORMATION ON THE HASHKEY ECOPOINTS(“HSK”). BEFORE

MAKING ANY DECISION AND ENTERING INTO ANY TRANSACTION IN RELATION TO OR UTILISING HSK,

YOU SHOULD TAKE STEPS TO ENSURE THAT YOU UNDERSTAND THE TRANSACTION AND HAVE MADE

AN INDEPENDENT ASSESSMENT OF THE APPROPRIATENESS OF THE TRANSACTION. YOU SHOULD

MAKE SURE THAT YOU HAVE SUFFICIENT INFORMATION AVAILABLE IN RELATION TO HSK BEFORE

MAKING ANY DECISION IN RELATION TO HSK.

THIS WHITEPAPER MAY NOT BE FORWARDED OR DISTRIBUTED INTO ANY JURISDICTION IN WHICH

SUCH DISTRIBUTION WOULD BE ILLEGAL OR TO PUBLICATIONS WITH A GENERAL CIRCULATION IN

THOSE JURISDICTIONS.

For convenience, translated versions of this whitepaper may be made available in languages other than in

English. Please note that the English version of this whitepaper is the governing version and in the event of

any inconsistency or discrepancy between the English version of this whitepaper and any other translated

version, the English version shall prevail.

The HashKey entities have determined that HSK:

1. could be “digital payment tokens” as defined in the Payment Services Act 2019 of the Laws of

Singapore.

2. would not be “capital markets products” as defined in the Securities and Futures Act 2001 of the

Laws of Singapore;

3. would not be “capital markets products” as defined in the Securities and Futures Act 2001 of the

Laws of Singapore; and

4. would not be “securities” as defined in the Securities and Futures Ordinance (Chapter 571) of the

Laws of Hong Kong.

Legal Notice

Legal Notice 12

The contents of this whitepaper have not been reviewed by any regulatory authority in Singapore or Hong

Kong. You are advised to exercise caution in relation to the information in this whitepaper and any transaction

that you intend to carry out involving HSK. If you are in any doubt about any of the contents of this

whitepaper, you should obtain independent professional advice.

This whitepaper is not an offering circular and should not be treated as offering material of any sort. This

whitepaper is not for public circulation, is solely for your information purposes and may not be reproduced,

redistributed or passed on directly or indirectly to any other person or published in whole or in part for any

other purpose. This whitepaper does not constitute or form part of any offer for sale, subscription for, or

solicitation or invitation of any offer to buy or subscribe for any HSK. This whitepaper does not purport to

identify or define any or all of the risks that would be associated with HSK. Any representation made on the

website of HashKey in respect of HSK will prevail over any representation in this whitepaper in the event of

any inconsistency.

Prior to making any decision regarding HSK, you should conduct such investigation and analysis regarding

HSK as you deem appropriate. To the extent that you deem necessary, you should consult your professional

advisers.

A copy of this whitepaper has been published on the website of HashKey. Should you intend to take any

action (directly or indirectly) relating to HSK described herein to any third party, you will be responsible for

complying with all applicable laws, regulations and rules in respect of any such action and the provision of

all appropriate risk warnings and disclosures.

HashKey reserves all rights at any time to change the economics, and all other terms and conditions, of HSK

in its sole discretion, including but limited to its supply and allocation schedule, policies, and reward

mechanisms. If HashKey makes any such change it will publish a revised version of this whitepaper on the

HashKey website. Before making any decision in relation to HSK you should accordingly ensure that you are

referring to the latest version of this whitepaper on the HashKey website.