Futu and Tiger Brokers Restrict New Accounts in China

On September 22, Futu Securities and Tiger Brokers restricted account openings for mainland Chinese residents, aligning with new regulatory directives from China, impacting their brokerage services.

These restrictions underscore tighter regulatory compliance, potentially reshaping the brokerage access for Chinese mainland investors without affecting the broader cryptocurrency market.

Tighter Overseas Proof Requirements for Chinese Account Holders

Both Futu Securities and Tiger Brokers have revised their account requirements for mainland Chinese residents following regulatory directives. The new criteria mandate proof of overseas residency, narrowing eligibility for account holders. Futu’s customer service highlighted an ongoing system upgrade, presently facilitating account openings solely for individuals with Hong Kong or Macau identification. Upon completion, the system will accept mainland Chinese IDs paired with overseas residency certificates. Tiger Brokers similarly adjusted its policy, no longer accepting mainland applications based on overseas work documentation.

In terms of impact, these brokers now necessitate additional verification, limiting account access. Meanwhile, customer service reports maintained previous guidelines, hinting at a gradual policy integration process. Officials from both companies have not publicly commented on these updates, leaving interpretations mainly to procedural shifts.

It appears that there are currently no direct quotes or statements from the leadership of Futu Securities and Tiger Brokers regarding the tightened account opening restrictions for mainland Chinese residents. As noted, there are no primary statements, official blog posts, or tweets from executives such as Li Hua (CEO of Futu) or Wu Tianhua (CEO of Tiger Brokers) concerning these updates.

No Major Crypto Market Impact Despite Brokerage Policy Shifts

Did you know? Tightened brokerage policies mirror earlier actions by the CSRC in December 2022, when it classified certain operations as illegal and restricted mainland access.

Markets did not immediately respond, as these regulatory changes primarily affect equities, with no direct effect on digital asset markets or specific tokens. The absence of direct impacts on cryptocurrencies further underscores the isolated nature of these brokerage adjustments.

Coincu research suggests recent regulatory moves signal an enforcement of existing Chinese brokerage policies. Futu Securities has a Registration Portal for Record Code: 44030502008587. Historical CSRC interventions highlight increased scrutiny of cross-border securities amid national economic priorities. These developments indicate potential regulatory consistency, targeting compliance over immediate economic disruption.