According to reports, China has launched a major crackdown on illegal online investment platforms that allow people in the country to access overseas securities.
The China Securities Regulatory Commission (CSRC) started this effort on May 22, 2026, working with regulators from Singapore, Hong Kong, the United States, Australia, the United Kingdom, Canada, Switzerland, and several large international banks. The campaign will last two years and aims to stop unapproved online funding offers that help people in China move money into foreign securities.
China is launching a sweeping campaign against illicit cross-border securities, futures and fund trading https://t.co/338gYiCIIy
— Bloomberg (@business) May 22, 2026
Comprehensive regulations on fintech packages
The new rules stop overseas brokers from advertising, opening accounts, or making changes for customers in China. Regulators plan to fine major online platforms such as Futu Holdings, Tiger Brokers, and Longbridge Securities for operating without approval. The CSRC also plans to recover illegal profits and issue heavy penalties. Because of these actions, the US-listed shares of these fintech companies have fallen sharply.
To comply with the new rules, fintech companies and financial institutions must stop all marketing and new customer sign-ups targeting people in China. They should review their cross-border services and disable any features that let users in China access their platforms without approval. It is also important to check client accounts, strengthen KYC checks to confirm user locations, and work with legal teams to ensure all digital services meet the new requirements.
What entities are being targeted?
Regulators emphasize the need to protect investor rights and ensure capital outflows are moved through legal, authorized channels. The crackdown follows an estimated US$1.04 trillion in capital outflows in the previous year. It targets domestic affiliates, intermediaries, and websites or social media accounts that market overseas investment products to mainland residents.
Chinese companies are not allowed to host websites, run servers, or develop software that supports these platforms. At the same time, websites and social media must stop sharing ads from these companies, and banks are now being watched more closely for money leaving the country.g the country.
Notably, the Chinese government stepped in to stop Meta from buying the AI startup Manus, blocking the $2 billion deal under foreign investment rules. Beijing is also watching offshore corporate restructuring more closely, especially companies that move to places like Singapore but still depend on Chinese talent and intellectual property.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
