The Securities and Futures Commission (SFC) of Hong Kong recently imposed a penalty on Saxo Financial (Hong Kong) Limited for distributing virtual asset funds and virtual asset - related products not authorized by the SFC via its online platform, in violation of regulatory requirements, with a fine of HK$4 million.

The SFC pointed out that Saxo Financial failed to conduct required assessments on whether clients possessed the knowledge to invest in virtual assets, failed to provide adequate risk warnings, and did not establish appropriate procedures for product due diligence. Although Saxo Financial has taken remedial measures and voluntarily compensated clients for relevant losses, the SFC still held that its conduct violated the relevant *Guidelines on Online Distribution and Investment Advisory Platforms* and *Code of Conduct*.