UK’s Financial Conduct Authority (FCA) Raises Concerns Over TikTok Coins
The UK’s financial regulatory body, the Financial Conduct Authority (FCA), has raised concerns about the use of TikTok Coins and how they could be exploited in money laundering activities. The agency emphasized the growing concerns around the use of TikTok Coins as it may be used to elude traditional regulations and policies created to deter anti-money laundering and terrorism financing.
According to a letter sent to FCA from a compliance consultant previously employed by a top private bank, the agency needs to be alert about TikTok being used as an unregistered cryptocurrency platform. The letter alleged that the social media platform’s virtual currency can be exchanged for real money without adequate controls to prevent it from being used for illegal activities.
Furthermore, the FCA should step in to audit the financial operations of the platform, particularly its virtual currency system. This would subject TikTok’s financial operations to existing laws concerning digital currencies and money transmission services. TikTok, which has been accused of illegally operating as an unlicensed cryptocurrency exchange in Australia, could also be facing scrutiny in the US over allegations of funnelling money from criminal activities on its platform.
