Virtual Asset Platform Compliance Pitfalls: Saxo Financial Fined 4 Million Yuan as a Warning

2026-01-07 02:00:12

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【CryptoWorld】The Hong Kong Securities and Futures Commission recently announced an important enforcement action against a virtual asset platform. Saxo Financial was fined 4 million HKD for violating regulations by selling virtual asset funds and related products on its online trading platform.

The details are as follows: from November 2018 to November 2022, Saxo Financial distributed some virtual asset products on its online platform. The issue is that, according to the relevant circulars from the SFC, these products should only be sold to professional investors, but Saxo Financial allowed ordinary retail clients to participate in the trading.

How serious was the violation? The SFC’s investigation found that during this period, Saxo Financial executed 1,446 virtual asset transactions. Participants included 6 individual professional investors and 130 retail clients, involving 32 virtual asset products. More notably, all these products are classified as high-risk, complex products, including 21 transactions involving exchange-traded derivatives of virtual assets.

The most critical violation point is: before allowing clients to trade these products, Saxo Financial neither assessed whether clients truly understood the investment risks of virtual assets nor provided sufficient information disclosure, nor did it issue necessary risk warnings regarding virtual assets. This directly violated the clear compliance guidelines in the SFC’s circular.

This case provides a clear lesson for industry practitioners: in virtual asset business, client classification, information disclosure, and risk warnings are all indispensable. Especially when dealing with complex derivative products, compliance procedures must be strictly followed. Otherwise, even if the trading volume doesn’t seem particularly large, the platform could face fines in the millions and reputational risks.

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LoneValidator

· 15h ago

Here comes the old trick of cutting leeks again, and this time, SG Wealth directly slaughtered retail investors like pigs. Huh, just 4 million? 130 retail clients were scammed, feels like the compensation isn't enough. Four years, 1446 trades—how many people's hard-earned money has been lost... Why is compliance so difficult? Looks like we need to be more careful when choosing platforms; not all exchanges are reliable. After this incident with SG Wealth, who else would dare to step into this trap? Haha

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DaisyUnicorn

· 17h ago

Once again, the trick of "selling high-risk wildflowers to novices" ... 130 retail clients, this time the CSRC has finally caught onto SG Financial's Achilles' heel. Even the most delicate flowers in the garden are used as sacrifices for complex products, no wonder the penalties are so severe.

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ZenZKPlayer

· 01-09 02:04

Wow, it's the same old trick again. Retail investors get cut and still have to admit bad luck --- 130 retail clients fell into the trap, this is what they call "compliance" haha --- This round of operations by SG really is top-notch. High-risk products are still sold to beginners --- Four years and only a 4 million penalty, is this rate of return even believable? --- Basically, they just want to make money and don't want to follow the rules --- I just want to know how those 130 retail investors are feeling right now --- Compliance is just for show for platforms --- Selling complex products to retail customers, isn't this just nakedly harvesting? --- The CSRC's speed is really loud thunder but little rain --- Made me laugh. Violations took four years to catch, what about the others?

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alpha_leaker

· 01-08 00:47

Another platform has collapsed, this time 4 million, who are they trying to scare? Saxo's move is really bold, openly treating retail clients like leeks to be harvested. Four years of sneaky 1446 transactions, 130 small retail investors caught holding the bag—this is the current state of Web3. Illegally selling high-risk products to retail investors, the CSRC is finally taking serious action this time. If platforms are like this, I wonder who still dares to trust these exchanges...

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SmartContractWorker

· 01-07 02:29

Another old trick, selling high-risk products to retail investors, only to be fined after something goes wrong. What about the retail investors' money? --- 130 retail clients were scammed. This method from Schwab really has no credibility. --- It took 4 years to be discovered. The efficiency is impressive. I bet there are many other platforms doing the same thing. --- Selling high-risk products to novice clients is just outrageous. Who designed the risk control? --- Schwab was fined 4 million. Shouldn't these 130 retail investors be compensated? Just fining the platform is pointless. --- From being scammed in 2018 to 2022, really, I've seen too many of these cases.

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0xSherlock

· 01-07 02:24

A fine of 4 million, is that all? Saxo's move is really gambling on the regulatory response speed.

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GasFeeTears

· 01-07 02:22

Another platform crash, still the same old trick, letting retail investors in to get chopped.

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ThesisInvestor

· 01-07 02:08

Another one, is it Schwab's turn this time? Caught after four years, and still have the nerve to 130 retail investors were cut, and only fined 4 million. This calculation is way too clear Licensed institutions play like this, how are we retail investors supposed to survive

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MEVHunterBearish

· 01-07 02:03

Another platform has fallen, this time it's Saxo Bank. A 4 million fine and they think it's over? 130 retail investors got wiped out and no one is responsible.

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token_therapist

· 01-07 02:02

Oh no, another trap. Saxo's move this time is really brilliant. 130 retail investors got caught without even realizing it. 4 million yuan in fines? That's nothing to these platforms. The problem is, what about the money from those retail investors? That's why I never touch those complex products. 99% of ordinary people simply can't hold on.

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