Hong Kong SFC: Severely Reprimands Saxo Capital Markets and Fines HKD 4 Million for Violating Virtual Asset Product Distribution Regulations

Odaily News The Hong Kong Securities and Futures Commission (SFC) officially announced that it has severely reprimanded Saxo Capital Markets (Hong Kong) Limited (Saxo Capital Markets) and imposed a fine of HKD 4 million. This action was taken due to deficiencies identified by the SFC in Saxo Capital Markets' distribution of non-SFC authorized virtual asset funds and virtual asset products on its online trading platform (the online platform). The SFC's investigation found that between November 1, 2018, and November 25, 2022, Saxo Capital Markets executed 1,446 transactions on the online platform for six individual professional investors and 130 retail clients, involving 32 virtual asset products. However, prior to executing these transactions, Saxo Capital Markets did not assess whether the clients possessed the knowledge to invest in virtual asset products, nor did it provide clients with sufficient information or specific warnings regarding virtual assets. Consequently, its practices did not comply with the guidelines set out in the two relevant SFC circulars.