Informed Crypto News
TikTok accused of operating as crypto exchange in the UK, report
Headline, TikTok accused of operating as crypto exchange in the UK report, published at 454 PM UTC, October 15, 2024, on protos.com. TikTok has been accused of operating as an unlicensed crypto exchange in the UK in a letter sent to the country's Financial Conduct Authority, FCA, by a former compliance consultant for a leading private bank. As reported by Financial News, the letter claims that TikTok's virtual currency can be indirectly exchanged for fiat through the platform's reward system. As a result, it says the social media giant should be placed under the FCA's anti-money laundering and terrorist regulations. TikTok via its rewards program is facilitating money transmission to money service businesses and exchanging or arranging or making arrangements with a view to the exchange of crypto assets for money or money for crypto assets, the letter says. Users can purchase so-called TikTok coins and use them to send gifts to content creators. These gifts can then be converted into diamonds and cashed out for fiat. The letter claims that because TikTok is not registered with the FCA, the app is at risk of being used by criminals for illicit activities and money laundering without the proper anti-money laundering AML regulations. However, it's unclear from the Financial News report how TikTok coins are clashed as cryptocurrency since they are only referred to as virtual coins and virtual tokens. The report also fails to disclose the identity of the compliance expert, referring to them only as "a former compliance officer at a leading private bank and asset manager." TikTok has previously been referred to Australia's AML authority by shadow minister James Patterson and is currently hiring more compliance staff. The state of Utah is also suing the platform over alleged money laundering through its reward system and for facilitating the sexual exploitation of minors. This recording was AI-generated. Get more crypto news at protos.com.