Moomoo Securities Faces 3-Month Ban on New Accounts, June 21

Japan’s Financial Services Agency ordered moomoo Securities to halt all new account solicitation from June 19 to September 18. The regulator found the company falsely represented products as NISA-eligible, failed to report suspicious transactions, and had weak cybersecurity. Moomoo is a subsidiary of Hong Kong-listed Futu Holdings and serves over 2 million Japanese users through its mobile app.

What Moomoo Did Wrong

The FSA found that moomoo Securities misled clients by claiming non-eligible products qualified for Japan’s Non-Taxable Investment Scheme (NISA) tax benefits. The company also failed for an extended period to investigate and report suspicious transactions. Internal management systems were inadequate, and cybersecurity measures fell short of regulatory standards.

The Three-Month Suspension

New account sign-ups stop from June 19 through September 18, 2026. The FSA also issued a corrective action order requiring the company to strengthen internal management, assign clear responsibilities including for senior management, and develop a business improvement plan. The suspension directly impacts growth for the subsidiary, which expanded by promoting low commissions on U.S. stock trading.

Impact on Futu Holdings

Moomoo Securities is a Japanese subsidiary of Futu Holdings, a Hong Kong-based online brokerage listed on NASDAQ. The company operates through a mobile app with over 2 million downloads in Japan. The three-month ban on new account solicitation will limit customer acquisition in one of its key markets during the suspension period.

Regulatory Violations Cited

Japan’s Financial Instruments and Exchange Act prohibits soliciting clients using false information. The FSA’s enforcement action reflects growing scrutiny of online brokerages. TBS NEWS DIG reported the suspension order on June 19.

Final Thoughts

Moomoo Securities faces a three-month ban on new account sign-ups due to regulatory violations in Japan. The suspension will slow customer growth for Futu Holdings’ subsidiary during a critical period.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.