Key Highlights:
- Hong Kong Securities and Futures Commission flagged the “HOMEO” token as a suspicious, unauthorized investment product promoted in Hong Kong.
- The token was marketed through seminars and outreach with claims of potential returns, but key details about its structure and issuer remain unclear.
- Regulators warned investors to exercise extreme caution, noting that unapproved crypto investment schemes can lead to significant or total financial loss.
The Hong Kong Securities and Futures Commission has added the “HOMEO” token to its list of suspicious investment products, with a warning that the offering may have been marketed to the public in Hong Kong without authorization. The regulator said the token, also referred to as “HOMEO Trend,” appears to be linked to claims of investment returns and was promoted through seminars and outreach efforts targeting local investors.
Hong Kong Blacklists ‘HOMEO’
According to the SFC, the product is operated and promoted by Excellence Homeopathy (Hong Kong). The commission believes that the offering was presented to residents as an opportunity to earn returns through a digital token-based investment. Information about the token was distributed at seminars held in the city, where prospective investors were introduced to the product and encouraged to consider participation.
The regulator stated that HOMEO Trend has not been authorized for sale to the Hong Kong public. As a result, its disclosure documents have not undergone regulatory review. The SFC added that any investment product not approved by the regulator may carry significant risks, including the possibility of total financial loss. It advised investors to go for such offerings with extreme caution, especially when they involve promises of returns tied to cryptos.
The alert places HOMEO Trend among products that require intense scrutiny from the public. The SFC said that the token is considered questionable due to allegations that it was promoted with claims of potential profits. Marketing activity reportedly included both online outreach and in-person seminars, where information about the crypto was shared directly with attendees. But, details about the structure of the product, its issuer, and the mechanisms through which returns would be generated remain unclear.
Local reports reveal that the SFC’s announcement is meant to serve as a warning rather than investment advice. The regulator has highlighted that individuals should carefully assess risks before committing funds to any product that promises returns, especially when such offers are made through public events or direct promotions. The inclusion of HOMEO Trend on the suspicious list shows that the commission sees potential red flags in how the product has been marketed.
The warning comes at a time when Hong Kong introduced a series of new rules to add more crypto-related products and services available in the market and also maintain investor protections. The SFC has rolled out regulations that allow licensed brokers to provide financing for crypto purchases and allow professional traders to access advanced products such as perpetual contracts.
Under the new rules, margin lending is initially limited to major cryptos like Bitcoin and Ether. Brokers offering such services must follow strict requirements on collateral quality, risk management, and exposure limits. These measures are part of the regulator’s “ASPIRe” program, which aims to build a structured and secure market environment suitable for institutional participants while continuing to protect retail investors.
Officials have made clear that while Hong Kong is open to innovation in digital finance, unauthorized or misleading investment schemes will be closely monitored and flagged. The regulator reiterated that investors should remain vigilant and verify whether a product is officially authorized before making any investment decisions.
The commission added that it will continue to scrutinize market activity and update its list of suspicious investment products if and when necessary.
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