Hashkey Exchange to Launch Avalanche Trading for Professional Investors in Hong Kong
Summary:
Hong Kong-based crypto exchange Hashkey, the first to obtain a retail crypto license in the region, is set to introduce Avalanche (AVAX) trading. However, trading is exclusive to 'professional' investors with portfolios exceeding 8 million HK dollars. The strict regulation in Hong Kong requires users to deposit the equivalent of $1,500 for the Know Your Customer verification process. The largest financial fraud in Hong Kong's history involving JPEX crypto exchange has led to the Securities & Futures Commission publishing a warning list of non-compliant exchanges.
Hashkey, a cryptocurrency exchange based in Hong Kong and the first to secure a retail crypto license there, is about to start trading Avalanche (AVAX). However, there's a condition. As stated in the announcement on September 27, AVAX trading on Hashkey is exclusively reserved for professional investors. These are individuals who hold an investment portfolio greater than 8 million Hong Kong dollars ($1 million), per the stipulations of the Securities & Futures Commission (SFC) of the Special Administrative Region (SAR). Currently, the SFC has only given its nod for retail trading of Bitcoin (BTC), Ether (ETH), and Tether (USDT), leaving other altcoins to be traded by professional investors only. Hong Kong started regulated retail crypto trading in August and since then, the SFC has heavily regulated exchanges. Unlike other international exchanges, Hashkey Hong Kong requires users to deposit an equivalent of $1,500 into their exchange accounts as a part of the Know Your Customer verification procedure. Cointelegraph reported in June about cryptocurrency exchanges spending more than $25 million for getting equipped with necessary infrastructure for a Virtual Asset Provider (VASP) license in Hong Kong. Counterintuitively, Hashkey Hong Kong’s estimated 24-hour trading volume across three cryptocurrencies stands at a meager $5.3 million, a mere pittance compared to its global counterparts. The implementation of a regulated crypto regime has, amusingly, not deterred malfeasance. The biggest financial scam in Hong Kong's history came to light during the Token2049 conference in September, with the collapse of the JPEX crypto exchange. The exchange, which was not registered with the SFC at the time, is being investigated by the police for allegedly misappropriating over $178 million of investors' funds. In response to this incident, the SFC has started to publish a list of suspected non-compliant crypto exchanges in the SAR. Attn #Crypto buffs! Starting September 28, $AVAX @avax will trade on HashKey Exchange. Deposits and withdrawals are now live, and AVAX/USD trading pairs are specifically designed for professional investors! #CryptoAlert Full story: https://t.co/sKNFHDF6oe pic.twitter.com/ZQpzSmAi39— HashKey Exchange (@HashKeyExchange) September 27, 2023
Published At
9/27/2023 4:50:51 PM
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