TikTok Investigated by UK FCA for Allegedly Operating as Unregistered Crypto Exchange, Illegal Operations

Oct 17, 2024, 12:07 AM

TikTok is under scrutiny by the UK's Financial Conduct Authority (FCA) for allegedly operating as an unregistered crypto exchange. A former compliance consultant accused TikTok of acting as a crypto exchange through its virtual coin system and creator rewards program in a letter to the FCA. The FCA is investigating whether TikTok's activities qualify as crypto asset-related activities, potentially making it a loophole for money laundering. The platform allows users to buy virtual coins and convert them into real cash, which has raised regulatory concerns about illegal operations.