Hong Kong-based cryptocurrency exchange Hashkey has announced that it will be adding support for trading the Avalanche (AVAX) token on its platform. However, there is an interesting requirement for traders who wish to interact with this cryptocurrency on the exchange.
In order to trade the AVAX token on the Hashkey exchange, users must be professional investors or individuals with an investment portfolio worth at least 8 million Hong Kong dollars (equivalent to $1 million), according to Hong Kong’s Securities & Futures Commission (SFC). This requirement sets a high bar for entry and restricts retail investors from accessing this particular cryptocurrency.
The SFC has imposed significant restrictions on the operations of cryptocurrency exchanges in Hong Kong. Currently, only Bitcoin (BTC), Ether (ETH), and Tether (USDT) are approved for retail trading. Other altcoins, including AVAX, can only be traded by professional investors or individuals with a $1 million portfolio.
This strict regulatory framework aims to protect retail investors from potential risks associated with lesser-known cryptocurrencies. However, it also limits their ability to participate in the potentially lucrative world of digital assets.
Hashkey, the first cryptocurrency exchange to receive a retail crypto license in Hong Kong, has a daily trading volume of approximately $4.93 million, according to CoinGecko data. While this may seem significant, it pales in comparison to its global counterparts.
For example, Binance, the world’s largest crypto exchange, boasts a 24-hour trading volume of nearly $4.9 billion. The relatively low trading volume on Hashkey may be attributed to the limited number of cryptocurrencies available for retail trading in Hong Kong.
The listing of AVAX on the Hashkey exchange provides a potential opportunity for increased adoption of this cryptocurrency. However, it is important to note that AVAX has been struggling in recent months, and September was no exception.
In the past 30 days, AVAX has lost nearly 14% of its value, reflecting the uncertain market conditions. Since its peak of $21 in April, the cryptocurrency has experienced an estimated 58% decline. As of now, AVAX is being traded at $8.91, with a 0.31% dip in the last 24 hours.
Despite its recent performance, AVAX still holds a daily trading volume of $117,251,082, which represents an 18.4% increase in the past day. With a market cap of over $3.1 billion, AVAX currently ranks as the 24th-largest cryptocurrency.
The addition of AVAX to the Hashkey exchange offers an opportunity for professional investors and high net worth individuals to trade this cryptocurrency. However, the strict regulatory framework in Hong Kong limits retail investors’ access to AVAX and other altcoins.
While AVAX has experienced a decline in value in recent months, its listing on a reputable exchange like Hashkey may contribute to increased adoption and market activity. As the cryptocurrency market continues to evolve, it will be interesting to see how AVAX fares and whether it can regain its previous highs.
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