Hashkey, a Hong Kong-based cryptocurrency exchange, has announced that it will support trading of Avalanche (AVAX) tokens on its platform. However, there is an interesting requirement that traders must fulfill before they can interact with this cryptocurrency on the exchange.
According to the Securities & Futures Commission (SFC) of Hong Kong, only professional investors or individuals with an investment portfolio worth at least 8 million Hong Kong dollars (equivalent to 1 million US dollars) are allowed to trade AVAX tokens. This announcement was made by Hashkey on Wednesday, September 27, with trading expected to begin on Thursday, September 28.
At present, only Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are the cryptocurrencies approved by the SFC for retail trading. Other altcoins like AVAX are restricted to professional investors or individuals with a portfolio of 1 million US dollars.
Since Hong Kong approved retail trading of cryptocurrencies in August, the SFC has imposed significant restrictions on the operations of exchanges, including Hashkey. For example, users are required to deposit at least 10,000 Hong Kong dollars (or 1,500 US dollars) during the Know Your Customer (KYC) verification process.
CoinGecko data shows that Hashkey, the first company to receive a retail cryptocurrency license in Hong Kong, has a daily trading volume of about 4.93 million US dollars, which pales in comparison to its global counterparts. For comparison, Binance, the world’s largest cryptocurrency exchange, has a 24-hour trading volume of nearly 4.9 billion US dollars.
The listing of AVAX on Hashkey’s exchange presents a potential opportunity for greater acceptance, but it is worth noting that the cryptocurrency has struggled in recent months. In September, AVAX lost nearly 14% of its value, continuing its overall decline in 2023. Since reaching a peak of $21 in April, the cryptocurrency has fallen by an estimated 58%.
According to CoinGecko data, the Avalanche token is currently trading at $8.91, with a decrease of 0.31% in the last 24 hours. The cryptocurrency has a daily trading volume of $117,251,082, representing an 18.4% increase from the previous day. With a market capitalization of over 3.1 billion US dollars, Avalanche is the 24th largest cryptocurrency.
The AVAX price chart on TradingView indicates a continuing downtrend in the daily timeframe, reflecting the uncertain market conditions. Traders and investors should carefully analyze these trends before making any decisions.
In conclusion, the support for AVAX trading on Hashkey’s exchange is subject to certain requirements imposed by the SFC. While this presents an opportunity for increased accessibility, the recent decline in AVAX’s price underscores the challenges faced by this cryptocurrency. Traders and investors must carefully evaluate the market conditions and their own portfolios before engaging with AVAX on Hashkey.
