Japan’s Financial Services Agency has ordered Futu’s subsidiary, moomoo Securities, to suspend some of its business, including a 3-month suspension of its new account opening services.

BlockBeats News, June 19 — According to Nikkei News, the Financial Services Agency of Japan announced on the 19th that it has issued a partial business suspension order to the foreign-invested internet securities firm Moomoo Securities. The order requires it to cease new account opening recruitment and acceptance activities within the three months from June 19 to September 18. At the same time, the Financial Services Agency also issued a business rectification order, requiring the company to strengthen internal management systems, clarify responsibilities including management, and develop a business improvement plan to prevent future issues.

According to the Financial Services Agency of Japan, the company has engaged in improper operational behaviors, such as providing false explanations to clients, misleading products that are not within the scope of NISA (Nippon Individual Savings Account, a tax-free small investment scheme), and other violations. Japan’s Financial Instruments and Exchange Act prohibits soliciting clients or signing contracts based on false information. Additionally, the company has long failed to verify and report suspicious transactions, and its cybersecurity measures are inadequate, with multiple deficiencies in its internal management system.

Moomoo Securities is a Japanese subsidiary of Futu Holdings, a Hong Kong online securities giant listed on NASDAQ in the United States. It provides services through a mobile app, with over 2 million downloads in Japan, and expands its customer base by highlighting low fees for U.S. stocks.