TikTok faces charges in UK of operating cryptocurrency exchange-like business

BlockBeats news, October 17, according to cryptonews, the short video app TikTok is under scrutiny because it is accused of operating like a cryptocurrency exchange in the UK.

A compliance expert has alerted the UK Financial Conduct Authority (FCA) and recommended that TikTok conduct money laundering and terrorist financing checks. The expert highlighted concerns that virtual tokens on TikTok may be indirectly converted into fiat currency through its creator program.

The review stems from TikTok's virtual currency system TikTok Coins. Users can buy tokens with fiat currency and give them to others on the platform or in live broadcasts. They may also convert tokens back to cash. This process is similar to cryptocurrency transactions.

This system has raised regulatory concerns because cryptocurrency companies face strict regulation. Critics believe that TikTok's handling of virtual currencies may attract the same scrutiny as cryptocurrency platforms. In addition, cryptocurrency-like transactions have also raised concerns about the security of users' financial data.

TikTok and the FCA did not respond to requests for comment by press time.