The cryptocurrency exchange scene in Hong Kong has been buzzing with excitement as Hashkey recently announced its support for trading the Avalanche (AVAX) token on its platform. This marks a significant development for Hong Kong’s financial landscape, but there are certain requirements that investors must meet before they can interact with this cryptocurrency on the exchange.
The Listing of AVAX Token
On September 27, Hashkey made the much-awaited announcement of listing the AVAX token on its platform, with trading scheduled to begin the following day. However, there is a catch – only professional investors or individuals with an investment portfolio worth at least 8 million Hong Kong dollars (equivalent to $1 million) are eligible to trade the AVAX token, as stipulated by the Hong Kong Securities & Futures Commission (SFC).
Restrictions on Cryptocurrency Trading
As of now, the SFC has only approved Bitcoin (BTC), Ether (ETH), and Tether (USDT) for retail trading in Hong Kong. All other altcoins, including AVAX, are restricted to professional investors or those with a portfolio value of $1 million. The SFC has placed stringent regulations on crypto exchanges operating in Hong Kong, including Hashkey, following the authorization of retail crypto trading in August. For instance, during the Know Your Customer (KYC) verification process, users are required to deposit a minimum of 10,000 Hong Kong dollars (or $1,500).
Hashkey Exchange’s Market Position
Hashkey, the first exchange in Hong Kong to obtain a retail crypto license, has experienced a relatively modest daily trading volume of approximately $4.93 million, which 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. While the listing of AVAX on Hashkey presents an opportunity for increased adoption, it’s important to note that the cryptocurrency has faced challenges in terms of its price performance.
Throughout September, AVAX has experienced a decline of almost 14% in value, adding to its overall struggle in 2023. The token has seen an estimated 58% plunge since reaching a high of $21 in April. Amidst the uncertain market conditions, AVAX currently has a trading value of $8.91, reflecting a 0.31% dip in the last 24 hours. However, there has been a recent increase in its daily trading volume, reaching $117,251,082, which represents an 18.4% rise in the past day.
Despite the challenges faced by AVAX in recent months, the listing of the token on Hashkey has the potential to boost its adoption and market position. With the restriction limiting trading to professional investors, it signifies a certain level of exclusivity for AVAX. This exclusivity may attract high-net-worth individuals who meet the SFC’s criteria and are seeking new investment opportunities in the cryptocurrency market.
As the AVAX token settles into its new home on the Hashkey exchange in Hong Kong, it brings with it the potential to reshape the local crypto landscape. The requirement of a substantial investment portfolio for trading AVAX adds an element of exclusivity and may fuel interest from professional investors. While AVAX has faced its fair share of struggles in recent months, its listing on Hashkey presents an opportunity for increased adoption and growth. Only time will tell how this pairing will impact the cryptocurrency market in Hong Kong and beyond.