Apparently not. What exactly is the problem? You just upload an image and put the url in that box, right?
Bear in mind that one could never have avatars hosted here, or at least not for a long time before the most recent forum upgrade.
Why can't Qhimm host avatars here?. I believe it already has been don for about ten years now...
I'm going to take a wild guess and say that security might be the reason. I read a thread a while ago from someone warning us of a hacker who damaged servers (or something like that) by uploading corrupted avatars.
It's probably easier on bandwidth as well, and I suspect that qhimm isn't a fan of avatars either (he certainly doesn't like signatures...). In fact, I also recall reading a (very old) thread in which he expresses disapproval of them, but it might have been someone else who said it.