March 27, 2024
Exclusive AVAX Trading: Reserved for High-Net-Worth Investors on Hashkey Hong Kong.
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Exclusive AVAX Trading on Hashkey Hong Kong: Only for High-Net-Worth Individuals

Hong Kong-based cryptocurrency exchange Hashkey, which was the first to obtain a retail crypto license in the Special Administrative Region (SAR), is set to introduce Avalanche trading on its platform. However, there is a caveat.

As per the announcement made on September 27th, only professional investors or individuals with an investment portfolio valued at over 8 million Hong Kong dollars ($1 million), as defined by the SAR’s Securities & Futures Commission (SFC), will have the ability to engage in AVAX trading on the Hashkey exchange. Presently, the SFC has granted approval for retail trading of only Bitcoin, Ether, and Tether, while other alternative cryptocurrencies are subject to restrictions applicable to professional investors.

Since the inception of regulated retail crypto trading in Hong Kong in August, the SFC has imposed substantial constraints on exchanges. In contrast to its global counterparts, Hashkey Hong Kong mandates that users deposit the equivalent of $1,500 into their exchange accounts as part of the Know Your Customer verification process.

Crypto exchanges have collectively invested more than $25 million to establish the necessary infrastructure for obtaining a Hong Kong Virtual Asset Provider (VASP) license. Meanwhile, Hashkey Hong Kong’s estimated 24-hour trading volume stands at a mere $5.3 million across three cryptocurrencies, which is only a fraction of its international counterparts.

Ironically, the implementation of a regulated crypto framework did not seem to deter illicit activities. During the Token2049 conference in September, Hong Kong witnessed the largest financial fraud in its history, marked by the collapse of the JPEX crypto exchange. The police have accused JPEX of embezzling over $178 million of investors’ funds, noting that the exchange was not registered with the SFC at the time of the incident. Subsequently, the SFC has initiated the publication of a warning list featuring non-compliant crypto exchanges operating within the SAR.

Image by pixabay

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