HK SFC Flags Starcapital as Unlicensed, Warns USDT Deposits May Be Unrecoverable

This warning underscores a concrete risk for crypto users: stablecoin deposits on unlicensed platforms may lack the usual recovery channels. The SFC's mention of USDT specifically signals that self-custodied digital assets fall outside investor protection frameworks, a gap that matters as gold-adjacent margin products attract retail interest. Watch whether Hong Kong tightens disclosure rules for firms blending traditional commodities with crypto settlement.