Hong Kong-based cryptocurrency exchange Hashkey has become the first exchange to receive a retail crypto license in the Special Administrative Region (SAR). They are set to launch trading on their platform for Avalanche’s AVAX token. However, there’s a catch.
In the announcement made on September 27th, Hashkey specified that only professional investors — individuals holding investment portfolios exceeding HKD 8 million (approximately USD 1 million), as defined by the Hong Kong Securities and Futures Commission (SFC) — will be able to trade AVAX on their platform. Currently, only Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) have been approved by the SFC for retail trading.
The SFC has imposed significant restrictions on cryptocurrency exchanges since retail crypto trading was regulated in Hong Kong in August. Unlike global counterparts, Hashkey Hong Kong requires users to deposit an equivalent of USD 1,500 into their exchange accounts as part of the Know Your Customer (KYC) verification process.
Cryptocurrency exchanges are investing over USD 25 million to establish the necessary infrastructure for Hong Kong’s Virtual Asset Service Providers (VASP) license. Meanwhile, Hashkey Hong Kong has an estimated 24-hour trading volume of just USD 5.3 million across three cryptocurrencies, a small fraction compared to industry peers globally.