The China Securities Regulatory Commission (CSRC) plans to impose severe penalties on Tiger Brokers, Futu, and Changcheng, confiscating all illegal gains obtained by domestic and foreign entities involved.

BlockBeats News, May 22nd, the China Securities Regulatory Commission (CSRC) issued an announcement stating that the illegal cross-border business activities of Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited, and Changqiao Securities (Hong Kong) Limited violated Chinese securities, fund, and futures laws and regulations, disrupted the market order, and must be resolutely cracked down upon. In accordance with relevant regulations, the CSRC intends to confiscate all illegal gains of Tiger, Futu, and Changqiao's domestic and overseas related entities, and impose severe penalties in accordance with the law.

After the announcement was made, Tiger Brokers (TIGR) plummeted 24.82% in pre-market trading, and Futu Holdings (FUTU) plummeted 21.25% in pre-market trading.

BlockBeats Note: In 2022, the CSRC issued the "CSRC's Advancement of the Rectification Work on Futu Holdings and Tiger Brokers' Illegal Cross-Border Business" announcement. The previous rectification aimed to "effectively curb incremental growth and orderly resolve existing issues." The primary purpose was to prohibit platforms from continuing to attract new customers and open accounts domestically, while allowing existing users a relatively broad transition period. This new "Rectification Plan" has been upgraded to "resolutely ban illegal activities and prudently clear existing operations," indicating that the regulatory goal is not just to stop new business but to gradually phase out existing illegal cross-border operations within the 2-year concentrated rectification period.