Chau Pak Yin, also known online as Chau Kin Hei, has been sentenced to six weeks in prison by the Eastern Magistrates' Court in Hong Kong for operating a paid Telegram group that provided unlicensed investment advice. The group, 'Futu 。 Private Group', ran from April 16 to May 14, 2021, charging subscribers about US$200 per month and earning Chau approximately US$5,580 in total.
This case represents the first custodial sentence in Hong Kong for a social media influencer engaging in such activities, underscoring a regulatory crackdown on unlicensed 'finfluencers'. The Securities and Futures Commission (SFC) highlighted the importance of licensing, with Michael Duignan, Executive Director of Enforcement, stating, 'The SFC will have no hesitation in holding finfluencers accountable when their provision of investment-related content and advice on social media and online platforms constitute regulatory activities for which they should have been licensed.'
Chau was found guilty of violating the Securities and Futures Ordinance, which requires a license for 'advising on securities' when done 'by way of business'. The SFC ordered him to cover investigation costs, and the case is pending appeal. This ruling aligns with global regulatory trends, including actions by the UK's Financial Conduct Authority and the UAE's Securities and Commodities Authority, which has implemented a licensing regime for online financial content creators.
BTC
ETH
PEPETO
BNB