ChainCatcher report: Today, Futu Holdings (FUTU.O) announced that it received a notice of investigation and a preliminary administrative penalty notice from the China Securities Regulatory Commission (CSRC) and its Shenzhen branch. The CSRC stated that certain Futu entities in mainland China and Hong Kong conducted securities business, public fund sales, and futures business in mainland China without obtaining the required licenses or approvals, violating the Securities Law, the Securities Investment Fund Law, and the People’s Republic of China Futures and Derivatives Law. The CSRC intends to order the relevant companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with a proposed total fine amount of approximately RMB 1.85 billion (about USD 271 million). Additionally, the CSRC intends to impose a personal fine of RMB 1.25 million (approximately USD 183,575) on Mr. Li Hua, the company’s founder and CEO. Futu Holdings noted that the proposed fines are still subject to further procedures and the final decision of the CSRC.
Futu Holdings Faces Proposed 1.85 Billion RMB Fine from CSRC
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Summary
Futu Holdings (FUTU.O) has been proposed a fine of RMB 1.85 billion by the China Securities Regulatory Commission (CSRC), according to ChainCatcher. The regulator accused the company of operating securities, public fund sales, and futures businesses in mainland China and Hong Kong without the required licenses, violating multiple financial regulations. A personal penalty of RMB 1.25 million has also been proposed against CEO Li Hua. The penalties are still under review. The case underscores increased regulatory scrutiny of liquidity and crypto markets, as well as compliance with CFT requirements in financial operations.
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