Futu and Tiger Brokers Hit with Heavy CSRC Penalties: 1 Million Mainland Elites' US Stock Trading Accounts Enter Two

In 2026, eight departments carried out a rectification of illegal cross-border securities brokers. Existing accounts are only allowed to withdraw funds and not deposit for two years.

On the afternoon of May 22, 2026, the official website of the China Securities Regulatory Commission (CSRC) announced two events simultaneously.

First: Three institutions, Futu Securities, Tiger Brokers, and Longbridge Securities, have been investigated for their illegal securities business operations in the Chinese mainland and have received prior notice of administrative penalties. All illegal income will be confiscated, and severe penalties will be imposed in accordance with the law.

Second, and more importantly: With the approval of the State Council, eight departments, including the CSRC, jointly issued the "Implementation Plan for the Comprehensive Rectification of Illegal Cross - border Securities, Futures, and Fund Business Operations" on May 9, 2026. The goal is clear: after two years of concentrated rectification, all illegal cross - border business operations of overseas institutions will be completely banned.

Punishment is the end. The rectification plan is the starting point.

If you still have money in your Futu or Tiger account, you need to read this article to the end.

Who will be affected by this event?

The number of people directly affected by this event is approximately in the millions. This is an estimate based on the public financial reports of Futu and Tiger, not an official statistic.

Futu disclosed at the end of June 2022 that at that time, mainland Chinese customers accounted for 35% of the total customers. Considering that Futu has been accelerating its internationalization, it is estimated that there are about 500,000 mainland customers with assets. Adding the existing mainland users of Tiger and other platforms, the total scale is around one million. The asset figures behind these one million customers are truly astonishing: In 2024, the total customer assets of Futu exceeded HK$743.3 billion, and the total customer assets of Tiger reached US$41.7 billion. The combined customer assets of the two companies exceed RMB 21 trillion.

One million people account for less than 1% of the 237 million A - share investors. But this is not an ordinary 1%. They are among the first to be able to open accounts using English interfaces and convert money into US dollars to buy US stocks. They are from first - tier cities, have high education levels and high net worth, and are the ones who discuss investments among their peers. They write on Xiaohongshu and post on Zhihu, and their influence far exceeds their numerical proportion. This event will spread faster than any other financial news.

Behind the three fines is a long - planned crackdown

Many people's first reaction upon seeing this news was: Didn't they get investigated in 2022?

Yes. But that was a "warning," and this is a "crackdown."

On December 30, 2022, the CSRC clearly defined the illegality of such activities and launched a rectification of the illegal cross - border operations of Futu and Tiger. It required the prohibition of attracting domestic investors and opening new accounts. However, the accounts of existing mainland users were retained, and trading continued.

In May 2023, the two companies' apps were removed from domestic app stores. But removal does not mean the cessation of services. The accounts of existing mainland users remained, their assets remained, and trading continued. During this period, the platforms continued to process trading instructions for existing mainland users and collect commissions. According to the CSRC's current determination, these revenues are illegal income.

The eight - department joint effort means business this time

In the past few years, this issue has been in a state of "being regulated but not completely eliminated." This time is different.

Eight departments have signed on simultaneously - the CSRC, the Ministry of Public Security, the Ministry of Industry and Information Technology, the People's Bank of China, the National Financial Regulatory Administration, the State Administration of Foreign Exchange, and the Cyberspace Administration of China are all included. This lineup means that technical blockade, fund control, criminal liability, and network review will be tightened simultaneously in four dimensions.

The scope of rectification is also comprehensive: overseas institutions themselves, domestic affiliated parties assisting these institutions, illegal intermediaries attracting mainland customers, and online self - media that illegally publish account - opening tutorials - all are included.

Your account is on a two - year countdown

This is the question that most people are concerned about, and the official has given a clear answer.

First stage: From now on, within two years.

During the concentrated rectification period, overseas institutions are prohibited from providing services such as buying transactions and transferring funds to existing investors in the Chinese mainland. Only one - way selling transactions and fund transfers out are allowed.

In plain language: You can still sell the stocks in your account, but you cannot buy new ones or deposit money. The account function is reduced from "two - way trading" to "only out, no in."

Second stage: After two years.

After the concentrated rectification period ends, overseas institutions must completely shut down their domestic websites, trading software, and supporting servers and are prohibited from providing illegal trading services to existing investors in the Chinese mainland. At that time, you will be completely unable to use these platforms for trading in the Chinese mainland. The account will still exist, but it will be like an empty shell to you.

Is your money safe?

This is the most urgent question. The official has also specifically responded:

• The accounts that have been opened will not be forcibly cancelled, and the funds, stocks, funds, and other assets in the accounts will not be forcibly liquidated;

• The plan requires overseas institutions to communicate with investors and make arrangements for account disposal to ensure the safety of customers' property;

• Coordinate with overseas financial regulatory authorities to urge overseas institutions to take measures to ensure the property safety of domestic investors.

In short: Your money will not be confiscated, and your account will not be forcibly cleared. But you need to sell your assets, transfer them back to the Chinese mainland, or transfer them to other compliant channels within two years.

It should be noted that this is a policy - level commitment. The specific implementation details - such as how to transfer, where to transfer, and how long it will take - still need to wait for the official announcements of each platform. The safest step now is to log in to your account and confirm whether the withdrawal channel is unobstructed.

The deeper meaning of this event

The cases of Futu and Tiger are not just problems of two companies. From the regulatory logic, this set of combined measures has a clear and profound meaning:

Completely close the path of "using first, then complying." In the past decade, the rise of Futu and Tiger followed the Internet logic of entering the market first, accumulating users, and waiting for regulatory follow - up. With the two - year concentrated rectification period and the sealing of all existing stocks, this path is completely blocked.

There is a national - level capital control logic behind this. Mainland residents buying US stocks through overseas brokers involves cross - border capital flows. The flow of funds is difficult to track, and it bypasses the domestic financial regulatory system. The larger the scale, the more difficult it is to regulate. This is not a gray area that can be tolerated indefinitely. The following is for readers' reference only.

At the same time, the official clearly stated that the rectification targets illegal cross - border business operations and does not affect legal channels such as the Stock Connect programs, Qualified Domestic Institutional Investor (QDII) funds, and cross - border wealth management connect. It is not that you are not allowed to invest overseas, but that you are required to use regulated channels.

For ordinary investors, it is worth remembering this: Gray windows will always close one day. We just don't know when. Today, it has closed.

If you still have a Futu or Tiger account

Two years is neither too short nor too long. It's better to think it through now than to be in a hurry before the deadline.

First thing: Log in to your account and confirm the details of your assets and whether the withdrawal channel is unobstructed. If all your assets are on the platform, test the withdrawal function now to confirm that there are no abnormalities.

Second thing: Pay attention to the official announcements of the platforms. The official statements and specific disposal plans of Futu and Tiger in the future are the most direct sources of information for judging the next step and are much more reliable than various rumors.

Third thing: Understand compliant alternative channels. The Stock Connect programs, QDII funds, and cross - border wealth management connect are three officially recognized ways. Plan in advance according to your own investment needs.

This article is from the WeChat official account "BT Finance" (ID: btcjv1), written by BT Finance and republished by 36Kr with authorization.