## Saxo Financial faces Hong Kong sanctions for unauthorized crypto trading over four years

The Hong Kong Securities and Futures Commission (SFC) has imposed a HKD 4 million fine on Saxo Financial (Hong Kong) Limited for serious violations in the distribution of virtual asset products. The case highlights a compliance gap that lasted for more than four years, from November 2018 to November 2022.

**Scope of the violation: numbers that speak for themselves**

SFC findings reveal that Saxo Financial's platform facilitated 1,446 transactions linked to 32 different virtual asset products. Although these instruments were only available to professional investors under current regulations, the investigation found that 130 retail clients also accessed them. In contrast, only 6 professional investors executed transactions on the platform, demonstrating that access was granted selectively and inappropriately.

**Complex products without safeguards**

Among the products offered were exchange-listed derivatives and other highly complex instruments. The most critical breach was the total lack of suitability assessments: Saxo Financial did not verify clients' knowledge of virtual asset investments nor provide clear warnings about the associated risks, directly violating the guidelines established by the SFC.

**Implications for the sector**

This sanction reinforces Hong Kong's regulatory commitment to protecting retail investors in a space that is still not fully regulated. The SFC has made it clear that negligence in segregating products intended for professionals versus retail investors entails significant financial consequences and reputational damage for the involved platforms.