【23rd December, 2022, Hong Kong】New Huo Technology Holdings Limited ("New Huo Tech", Stock code 1611.HK) today is pleased to announce that its licensed compliance fund manager, New Huo Asset Management (Hong Kong) Limited ("NH Asset"), has partnered with Coinbase, the world's largest regulated cryptocurrency exchange, to become one of the first licensed asset managers in Hong Kong to offer virtual asset discretionary account management services to professional investors*. Going forward, NH Asset can serve as the investment manager for professional investors to manage their virtual asset trading accounts at Coinbase.
Tony Luk, Head of Investment Solutions at NH Asset Management, “At present, there is a huge market demand for thematic investment in areas such as DeFi, Metaverse concept index and Web3 projects. However, most of the traditional fund products presently available in the market are indirect investment nature and they are normally burdened with high administrative costs which deter participation from professional investors. Leveraging our understanding and expertise in the virtual asset industry together with our commitment to be being compliant, the launching of the virtual asset discretionary management account service we believe would be able to provide investors with a more efficient and direct entry to the virtual asset market at a reduced administrative cost.
Along the continued industry development of the virtual asset market, there is an increasing demand for professional institutions that have the capacity and ability to provide highly secured and diversified investment products. However, there is a lack of such institutions in the market at the moment and there is a significant loophole. As a licensed asset manager, NH Asset strictly complies with the "Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets" ("T&C") issued by the Securities and Futures Commission (SFC) on 4 October 2019 and related regulations.
Vivien Wong, General Manager of NH Asset, “NH Asset has always been committed to building a comprehensive and compliant asset management platform and attaches great importance to the interests of investors and their asset protection. We conduct rigorous due diligence on various counterparties to ensure that they meet the relevant regulations and standards. At the same time, NH Asset has formulated a comprehensive internal control system to ensure access to the trading system and account asset transfers are strictly controlled and monitored. In addition, leveraging its proprietary excellent investment risk management system, NH Asset is able to tailor-made investment rules and restrictions for investors according to their experience and risk appetite and monitor on a 24/7 basis, to safeguard investors' assets.
NH Asset is the first HKSFC - licensed virtual asset manager approved to actively manage virtual asset funds. It focuses on providing regulated institutional-level virtual asset management services with diversified and customized investment products. We believe that this product enrichment will further improve our overall investment platform to address the need of investors with different risk preferences, and bridge the virtual assets and traditional assets better.
*As defined in the Securities and Futures Ordinance (Cap.571 of the Laws of Hong Kong) and its subsidiary legislation.
About New Huo Tech
New Huo Technology Holdings Limited ("New Huo Tech", Stock Code: 1611.HK) is a leading one-stop crypto asset service platform. We are committed to leading traditional finance into the world of crypto assets, with professional, compliant, secure, and efficient services. Currently, the company services cover SaaS, virtual asset management, custody, OTC, lending, trading platform and strategic investment.
New Huo Tech has a strong point of view about the importance of compliance. We have been actively applying for several virtual asset and finance-related licenses in major global markets. Up to now, New Huo Tech's subsidiaries have successfully obtained: (i) approval from the Securities and Futures Commission of Hong Kong to conduct Type 4 (Advising on Securities) and Type 9 (Asset Management) regulated activities and to manage portfolios that invest 100% in virtual assets; (ii) registered as a Trust or Company Service Provider ("TCSP") License (Hong Kong) and registered as a Trust Company in Hong Kong；(iii) registered the Money Services Business (MSB) from the Financial Crimes Enforcement Network (FinCEN) in the United States; and (iv) registered the Money Services Business (MSB) from the Financial Transactions and Reports Analysis Centre (FINTRAC) in Canada.