Hong Kong-based cryptocurrency exchange Hashkey has recently announced its support for the trading of Avalanche (AVAX) tokens on its platform. This move is expected to bring increased opportunities to the crypto market. However, there are certain requirements that traders must meet in order to interact with this specific cryptocurrency on the exchange.
One interesting requirement set by Hashkey is that only professional investors or individuals with an investment portfolio worth at least 8 million Hong Kong dollars are allowed to trade AVAX on their platform. This requirement aligns with the guidelines set by Hong Kong’s Securities & Futures Commission (SFC). By imposing this restriction, Hashkey aims to ensure that only seasoned and qualified investors are participating in AVAX trading.
As of now, retail trading in Hong Kong is limited to Bitcoin (BTC), Ether (ETH), and Tether (USDT). Other altcoins, such as AVAX, are restricted to professional investors or those with a $1 million portfolio. The SFC has placed significant restrictions on the operations of exchanges, including Hashkey, since the authorization of retail crypto trading in August. For instance, during the Know Your Customer (KYC) verification process, users are required to deposit at least 10,000 Hong Kong dollars ($1,500). These regulations aim to protect investors and ensure the transparency and integrity of the crypto market.
Hashkey, the first cryptocurrency exchange to receive a retail crypto license in Hong Kong, currently has a daily trading volume of approximately $4.93 million. While this is a respectable figure, it pales in comparison to its global counterparts. Binance, the world’s largest crypto exchange, boasts a 24-hour trading volume of nearly $4.9 billion. This stark difference in trading volumes highlights the challenges faced by Hashkey in establishing its presence in the highly competitive crypto market.
Although the listing of AVAX on the Hashkey exchange presents an opportunity for increased adoption, it is worth noting that the cryptocurrency has been facing challenges in recent months. In September alone, AVAX lost nearly 14% of its value, reflecting its overall performance in 2023. The uncertain market conditions have contributed to a decline of approximately 58% since its peak in April when it reached $21.
As of this writing, AVAX is trading at $8.91, experiencing a slight dip of 0.31% in the last 24 hours. However, the cryptocurrency has seen an 18.4% rise in daily trading volume, amounting to $117,251,082. With a market cap of over $3.1 billion, AVAX currently ranks as the 24th-largest cryptocurrency.
The listing of AVAX on Hashkey Exchange presents an exciting opportunity for increased adoption and trading. However, the requirement for professional investors or high-net-worth individuals limits access for retail traders. Despite challenges faced by both Hashkey and AVAX, the evolving crypto market continues to offer potential for growth and expansion. Investors and traders will need to stay vigilant and adapt to the changing landscape as cryptocurrencies continue to gain prominence in the financial world.
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