Hong Kong-based cryptocurrency exchange Hashkey has announced that it will support trading the Avalanche (AVAX) token on its platform. This move is expected to increase adoption and provide an opportunity for investors. However, there is an interesting requirement that traders must meet before interacting with this cryptocurrency on the exchange.
On September 27, Hashkey announced the listing of the AVAX token on its platform, with trading set to begin on September 28. However, unlike Bitcoin (BTC), Ether (ETH), and Tether (USDT), which are approved by Hong Kong’s Securities & Futures Commission (SFC) for retail trading, AVAX and other altcoins are restricted to professional investors or individuals with an investment portfolio worth at least 8 million Hong Kong dollars (equivalent to $1 million).
The SFC’s requirements reflect the cautious approach taken by regulators towards the cryptocurrency market. It aims to protect retail investors and prevent potential risks associated with high-risk investments. By limiting the trading of altcoins to professional investors, it ensures that individuals have sufficient financial knowledge and resources to manage the risks involved.
Hashkey, the first cryptocurrency exchange to receive a retail crypto license in Hong Kong, has been subject to significant restrictions imposed by the SFC since retail crypto trading was authorized in August. For example, users are required to deposit at least 10,000 Hong Kong dollars (or $1,500) during the Know Your Customer (KYC) verification process.
Despite these limitations, Hashkey has managed to establish itself as a credible and trusted exchange in the region. According to CoinGecko data, it has a daily trading volume of approximately $4.93 million. However, this pales in comparison to global counterparts like Binance, which boasts a 24-hour trading volume of nearly $4.9 billion.
While the listing of AVAX on the Hashkey exchange presents a potential opportunity for increased adoption, it is important to consider the recent price performance of the cryptocurrency. AVAX has been struggling in recent months and September was no exception. The token lost nearly 14% of its value in the past 30 days, reflecting the uncertain condition of the general market.
AVAX experienced a significant decline since reaching a high of $21 in April. As of now, the cryptocurrency is trading at $8.91 with a 0.31% dip in the last 24 hours. Its market capitalization stands at over $3.1 billion, making it the 24th-largest cryptocurrency.
The listing of the AVAX token on the Hashkey exchange provides professional investors with a new opportunity to engage with the cryptocurrency. As more regulatory measures are put in place to protect retail investors, it is important to consider the risks and uncertainties associated with altcoin investments.
While AVAX has faced challenges in recent months, it is crucial to monitor its performance and market conditions. The cryptocurrency market is highly volatile and subject to various factors that can impact its value. As the industry continues to evolve, both investors and exchanges must adapt to meet regulatory requirements and ensure the security and stability of the market.
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