The financial landscape in Hong Kong is experiencing a dynamic shift as listed companies increasingly explore opportunities within the digital asset space. A recent development involves New Huo Technology, a Hong Kong-listed enterprise, which has initiated steps to launch a new cryptocurrency exchange named "New Huo HK." This move has captured significant market attention, signaling growing institutional interest in regulated crypto services.
While the exchange currently lists only three trading pairs—USDT/USD, BTC/USD, and ETH/USD—and shows no trading volume at this preliminary stage, it represents a strategic entry into the competitive digital assets market. The initiative is led by key industry figures, including Leon Li, a former principal of the Huobi exchange, and Du Jun, a co-founder of the Huobi Group, leveraging their extensive experience in the crypto sector.
According to corporate disclosures, Leon Li serves as a non-executive director and controlling shareholder of New Huo Technology, holding approximately 53.37% of the company’s issued share capital. Du Jun acts as the CEO, with Zhang Li assuming the role of CFO. This leadership team brings a blend of entrepreneurial vision and corporate governance to the venture.
Currently, the "New Huo HK" exchange website is operational on a trial basis as part of the company’s broader strategy to secure necessary financial and digital asset licenses in key jurisdictions. It has not yet commenced formal commercial operations, and access is restricted to professional investors as defined under Hong Kong’s Securities and Futures Ordinance.
What Is New Huo HK Exchange?
New Huo HK is an emerging digital asset trading platform initiated by New Huo Technology, a company listed on the Hong Kong Stock Exchange. Designed to cater primarily to professional investors, the exchange aims to provide a compliant and secure environment for trading major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), paired against the US dollar.
As of now, the platform is in a trial phase, reflecting the company’s cautious approach amid ongoing regulatory applications. The current interface offers no user registration option and emphasizes that services are exclusive to professional investors. This aligns with Hong Kong’s stringent regulatory framework for virtual asset service providers.
The exchange’s minimal initial offering—focusing only on stablecoin and blue-chip crypto pairs—suggests a deliberate, phased rollout. This strategy may help ensure operational resilience and regulatory compliance as the platform scales.
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Regulatory Context and Licensing Strategy
Hong Kong has been progressively developing a comprehensive regulatory regime for virtual assets. The Securities and Futures Commission (SFC) oversees licensing for entities engaged in digital asset activities, including trading and management services.
New Huo Technology’s subsidiary had previously obtained Type 4 (securities advising) and Type 9 (asset management) licenses from the SFC. In 2022, the company announced that the regulator had accepted its application for Type 1 (dealing in securities) and Type 7 (automated trading services) licenses, which are critical for operating a regulated crypto exchange.
The definition of "professional investor" in Hong Kong includes:
- Trust corporations holding total assets of at least HKD 40 million (or equivalent in foreign currency).
- Corporations or partnerships with an investment portfolio exceeding HKD 8 million or total assets of HKD 40 million or more.
- Individuals possessing an investment portfolio of at least HKD 8 million in securities, cash, or deposits as per the Securities and Futures Ordinance.
This regulatory clarity provides a structured pathway for institutions like New Huo to offer digital asset services while ensuring investor protection.
Leadership Vision and Strategic Direction
Du Jun, CEO of New Huo Technology, addressed speculation about the exchange via social media, clarifying that while the company plans to launch several reliable products this year, the New Huo HK trading platform is not currently among them. He emphasized that New Huo Technology, as a publicly listed company, is subject to SFC regulations and discloses all material information through official stock exchange announcements.
This statement indicates that the company is prioritizing regulatory compliance and transparent communication, even as it explores new business avenues. The involvement of seasoned executives like Leon Li and Du Jun suggests a balanced approach between innovation and governance.
Potential Market Impact
The entry of a Hong Kong-listed company into the crypto exchange arena could intensify competition, particularly for existing platforms like Huobi. Industry reports note that several veteran employees who had worked closely with Leon Li at Huobi have since departed, potentially aligning with the new initiative.
If successfully licensed, New Huo HK may attract professional investors seeking regulated avenues for digital asset exposure. Its association with a publicly traded parent company could enhance trust and credibility among institutional participants.
Moreover, in late 2022, New Huo’s asset management arm partnered with Coinbase, a regulated crypto exchange, to offer discretionary account management services to professional investors in Hong Kong. This collaboration highlights the company’s broader strategy to integrate traditional finance with digital asset innovation.
Frequently Asked Questions
What cryptocurrencies are available on New Huo HK?
The exchange currently supports three trading pairs: USDT/USD, BTC/USD, and ETH/USD. These pairs are limited to professional investors, and the platform is not yet fully operational for public trading.
Who can use the New Huo HK exchange?
Access is restricted to professional investors as defined by Hong Kong law. This includes individuals and institutions meeting specific asset or portfolio thresholds, ensuring compliance with local regulatory standards.
How does New Huo Technology relate to Huobi?
New Huo Technology is a separate Hong Kong-listed entity. While some executives, like Leon Li and Du Jun, were previously associated with Huobi, the companies operate independently under distinct corporate and regulatory frameworks.
Is New Huo HK regulated?
The exchange is currently in a trial phase as part of the company’s application for relevant licenses from the Securities and Futures Commission. Full regulatory approval is pending, and operations will remain limited until licensing is complete.
What is the significance of this development for the crypto market?
The involvement of a listed company in operating a crypto exchange reflects growing institutional adoption and regulatory maturation in Hong Kong. It may encourage other traditional finance entities to explore digital asset services.
Are there any risks for investors?
As with any emerging financial service, potential users should conduct due diligence, understand regulatory status, and assess their risk tolerance—especially during pre-license trial phases where operational scope is limited.
Looking Ahead
The initiative by New Huo Technology underscores a broader trend of traditional finance intermediaries embracing digital assets within regulated parameters. While New Huo HK is still in its infancy, its progression will be closely watched for insights into how listed companies can navigate the complex intersection of cryptocurrency innovation and financial compliance.
For professional investors and market observers, this development highlights the continuing evolution of Hong Kong as a strategic hub for responsible digital asset services. As regulatory frameworks solidify and institutional participation grows, the landscape for crypto trading and investment is poised for further transformation.