China Cracks Down on Tiger Brokers, Futu & Longbridge — CEXs and On-Chain US Stock Trading Could Be the Big Winners!

China's securities regulator, the CSRC, has announced penalties against three major cross-border brokerages — Tiger Brokers (NZ), Futu Securities (HK), and Longbridge Securities (HK) — for operating unauthorized securities trading, marketing, public fund sales, and futures brokerage services in mainland China. All illegal gains are subject to confiscation.

The crackdown is coordinated: the CSRC and eight other government departments have issued a joint plan to ban overseas firms from offering account opening, trading, and fund transfer services to mainland Chinese investors. A two-year cleanup period has been set for existing illegal business to wind down.

The enforcement action carries a significant secondary read for crypto markets. With traditional cross-border brokerage channels being shut down, Chinese retail investors seeking exposure to US equities may pivot toward centralized…