FTMO has introduced an institutional-grade Know Your Business (KYB) framework for onboarding corporate clients, signaling a move towards infrastructure typically seen at licensed brokers. Integrating iDenfy’s KYB solution enables FTMO to automate verification of corporate entities, ownership, and UBOs—common for brokers, but rare and notable for a prop firm. From Retail-Focused Prop Model to Broader Financial Infrastructure FTMO has historically positioned itself as a trading education and simulation platform, catering primarily to individual traders. Introducing full KYB capabilities goes beyond the compliance needs of that core audience and suggests preparation for more complex counterparties, including corporate partners, affiliates, and B2B relationships. This development is consistent with FTMO’s broader strategic direction, exemplified by its partnership with multi-asset broker OANDA. Gaining a regulated brokerage arm places greater emphasis on institutional-grade onboarding and ongoing compliance as foundational requirements. For licensed brokers, KYB is a regulatory requirement. For a prop firm, adopting these standards is a strategic choice that signals FTMO’s intention to broaden its operational scope to include more diverse business models while future-proofing compliance. Compliance as a Strategic Choice, Not a Regulatory Obligation FTMO cites flexibility and auditability as key considerations in selecting the KYB solution. “The ability to customise our KYB flow to match internal procedures was a decisive factor,” said Pavel Dusek, COO of FTMO, pointing to the need for a scalable system capable of supporting future growth. The iDenfy solution automates verification of corporate documentation across more than 180 company registries globally. Brokers handling international corporate accounts and cross-border partnerships typically use this functionality. From the vendor’s perspective, the integration reflects a broader trend among fast-growing financial firms. “FTMO operates at scale in a dynamic environment,” said Domantas Ciulde, CEO of iDenfy. “Automated KYB allows firms to verify corporate clients efficiently while maintaining transparency.” This article was written by Tanya Chepkova at www.financemagnates.com.

Hong Kong’s financial market regulator has reprimanded and fined the local unit of Saxo Bank HK$4 million (approximately US$514,000) for offering retail customers 32 crypto products meant only for professionals.This comes a year after Saxo closed its office in Hong Kong and subsequently shut down operations in the jurisdiction.Saxo’s Big Lapse in Hong KongAnnounced today (Tuesday), the Securities and Futures Commission (SFC) said that Saxo Capital Markets HK offered unauthorised virtual asset products on its online platform between 1 November 2018 and 25 November 2022.According to the regulator, the local Saxo unit did not realise the deficiencies in its crypto product offering until its Danish parent notified it in November 2022.“These products should only be offered to professional investors (PIs) according to two SFC circulars to intermediaries which were effective at the material time,” the regulator stated.The regulatory investigation revealed that the broker executed 1,446 transactions involving 32 virtual asset products for six individual professional investors and 130 retail clients. It also stressed that “all of them were complex products, including 21 exchange-traded derivative products (exchange-traded derivative VA products).”[#highlighted-links#] No Customer Knowledge AssessmentHong Kong’s SFC is alleging that the Saxo unit “did not assess whether the clients had knowledge of investing in virtual asset products, nor did it provide them with sufficient information and warning statements specific to virtual assets.”Specifically, the regulator found that the broker failed to assess the knowledge of 87 Saxo Hong Kong clients, including 82 retail clients, who traded the 21 exchange-traded crypto derivatives.The company allegedly did not have any specific procedures in place for conducting product due diligence on virtual assets during the period of breach.“It relied on certain protocols established on a group-wide basis by its parent company to identify instruments with VA exposure,” the SFC added. “Due to deficiencies in the protocols, the 32 VA products were not identified as such.”Saxo, which failed to go public despite inking a deal with a blank cheque firm in 2022, is reportedly attempting a sale. Investors, including Altor Equity Partners, Centerbridge Partners, and Interactive Brokers Group, have shown interest in the Danish broker.Meanwhile, Saxo also consolidated operations in Asia Pacific, apart from the closure of its Hong Kong and Shanghai offices. It sold over 80 per cent stake of its Aussie unit last year to a South African tech provider. This article was written by Arnab Shome at www.financemagnates.com.

StoneX Digital has received a Crypto-Asset Service Provider licence under the European Union’s Markets in Crypto-Assets Regulation. The licence was granted by the Central Bank of Ireland.StoneX Group also operates the retail trading brand Forex.com. The platform became part of the group after StoneX acquired GAIN Capital in 2020. Forex.com provides foreign exchange and CFD trading services to retail clients through locally regulated entities in several jurisdictions.StoneX Enables Institutional Crypto Execution EUStoneX Digital launched in June 2022. The authorisation allows the firm to provide digital asset execution and custody services across the European Union. These services will operate under the MiCA regulatory framework.[#highlighted-links#] Brian Mulcahy, Chief Executive Officer of StoneX Digital, said the firm aims “to enable our institutional and corporate investor base to integrate new products and new technologies into their existing investment lifecycle.” He said the company focuses on “reducing the friction” between traditional finance and digital assets.StoneX Digital has operated as a Virtual Asset Service Provider for more than a year. With the new licence, it can expand its regulated activities within the EU. The business serves institutional and corporate clients.StoneX Digital Expands EU Crypto OperationsStuart Davison, Chief Operating Officer of StoneX Group Inc., said the authorisation supports the group’s long-term strategy. He said it helps clients integrate “new products and technologies into their existing operating and investment frameworks.” He also referred to building “regulated, scalable infrastructure.”StoneX Expands Retail Trading, India OperationsEarlier, StoneX Group reported growth in its FX and CFD trading business, showing strength in its broader operations alongside the expansion of StoneX Digital into crypto. Q4 revenues rose 7% to $84.7 million, and FY24 revenues increased 21% to $316 million. Retail trading volumes remained steady, and revenue per million traded rose 8%.Overall net income for the quarter was $76.7 million, up 51% year-on-year. In October, StoneX expanded in India with new offices and IIBX membership, and made a $480 million takeover offer for UK-listed CAB Payments. This article was written by Tareq Sikder at www.financemagnates.com.