The regulator reprimanded the brokerage over compliance failures tied to a suspected ramp-and-dump probe, after Victory had already halted virtual-asset trading for users with mainland China identity documents in February.
Hong Kong’s Securities and Futures Commission (SFC, the city’s markets regulator) reprimanded Victory Securities Company Limited, imposed a HK$1.7 million fine, and suspended responsible officer Chiu Tsz-leung for three months from July 22 to October 21, 2026, over compliance failures linked to a client account. The breaches were uncovered during an SFC probe into a suspected ramp-and-dump scheme, with the regulator saying Victory failed to adequately question suspicious share-sale instructions and did not report possible fraud. The enforcement action follows an earlier move by the brokerage to shut virtual-asset trading in February for all users holding mainland China identity documents, while allowing withdrawals only. Victory said that step was taken to meet SFC requirements and mainland policies, underscoring the tighter compliance demands facing intermediaries offering crypto-related services in Hong Kong.