A recent regulatory case involving an exchange is worth noting. A licensed financial platform was heavily fined 4 million yuan for illegal distribution of virtual asset products on online platforms—this case exposed common vulnerabilities in risk control and customer protection among many exchanges.

From November 2018 to November 2022, the platform allowed customers to directly buy and sell virtual asset derivatives online. After investigation, regulators found that the platform executed 1,446 transactions involving 32 virtual asset products, including 130 retail investors and 6 professional investors. More seriously, 21 of these 32 products were exchange-traded derivatives—highly complex financial instruments.

Where did the problem lie? The platform neither properly assessed customers’ investment knowledge nor provided clear risk warnings and sufficient product disclosures. For high-risk derivatives, this approach clearly violated regulatory guidelines—the investor suitability principle was essentially ignored. This case serves as a reminder to exchanges and platform operators that merely listing products is far from enough; selling suitable products to suitable people and providing proper risk disclosures are the fundamental requirements.