Hong Kong crypto broker cuts off mainland customers as authorities scale scrutiny

Mainland China users have been cut off from trading services on the Victory Securities platform. Functions of buying and deposits have been permanently disabled following months of gradual decline. 

Despite the cut-off, Victory Securities clarified that withdrawals will remain open to allow the affected users to recover their existing assets.

Victory Securities blocks mainland trading functions

Victory Securities, a licensed broker in Hong Kong, has completed the final step in its multi-phase plan to distance its digital asset services from the Mainland Chinese market.

The firm announced that users identified as Mainland Chinese residents can no longer use the platform to buy or trade virtual currencies. Victory Securities clarified that it is not freezing assets, and users still have “withdrawal-only” privileges.

Victory Securities had previously paused new address certifications and banned the purchase of specific tokens for the mainland Chinese market.

Currently, the platform remains fully operational for local Hong Kong residents and international investors. The brokerage stated that its measures are essential to remain in “good standing” with both the Hong Kong SFC.

Why are Hong Kong crypto brokers cutting off mainland Chinese users now?

Days before Victory Securities made its announcement, Mainland Chinese authorities, led by the People’s Bank of China (PBoC), expanded the ban on issuing offshore tokens and the use of yuan-linked stablecoins in international markets.

By cutting off mainland users, Hong Kong brokers are protecting their licenses. Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), Hong Kong virtual asset service providers (VASPs) face “strict liability” if they are found to be “actively marketing” prohibited services to mainland residents.

Anhui recently reported a case involving a hidden money transfer chain, showing why the regulatory response is necessary.

The victim in Hefei was lured into a “dating app” scam, tricked into participating in a fraudulent shopping scheme, and was eventually convinced to deliver 260,000 yuan worth of gold to a designated offline location.

In the scheme, a suspect named Liu acted as a virtual currency acceptor and was involved in crypto trading since 2020.

On June 7, 2025, after Liu sold virtual currency on an illegal platform, the funds stolen from the Hefei victim were transferred into his bank account. Liu immediately moved the money to his personal WeChat account to hide the trail. Following a long-distance pursuit, police arrested Liu in Sichuan on January 15, 2026.

The Hong Kong Monetary Authority (HKMA) has been accelerating the implementation of the Stablecoin Ordinance, which became a regulated activity on August 1, 2025.

Since the primary entry point of many mainland users into the market is stablecoins, brokers are under intense pressure to ensure that no “gray market” funds from the mainland are entering the Hong Kong financial system.

The SFC now requires brokers to conduct rigorous due diligence on the residency of their clients. If a platform is found to be a “backdoor” for mainland capital to bypass China’s capital controls, it risks losing its hard-won VASP license.