The Chinese government has announced severe penalties against major US stock trading platforms operating within China, confiscating all illegal gains. This could benefit centralized exchanges (CEXs) and on-chain US stock trading. China's Securities and Exchange Commission (CSRC) has cracked down on illegal cross-border activities by Tiger Brokers (NZ), Futu Securities (HK), and Longbridge Securities (HK). The three platforms are accused of unauthorized securities trading services, marketing, public fund sales, and futures brokerage in mainland China. The CSRC and eight other departments have issued a joint plan to ban overseas firms from offering account opening, trading, and fund transfer services, with a two-year cleanup period for existing illegal business.