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

According to Odaily, the Hong Kong Securities and Futures Commission (SFC) officially announced that it has sternly condemned 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 in Saxo Capital Markets' distribution of non-SFC authorized virtual asset funds and virtual asset products through 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 risk warnings regarding virtual assets. Consequently, the firm failed to comply with the guidelines outlined in the two relevant SFC circulars.