Foreign media: TikTok is under scrutiny for allegedly conducting crypto exchange-like business in the UK

TikTok is under scrutiny for allegedly operating a cryptocurrency exchange-like business in the UK. A compliance expert warned the UK Financial Conduct Authority (FCA) that virtual tokens on TikTok could be indirectly converted into fiat currency through its creator program, recommending that TikTok conduct money laundering and terrorist financing checks. 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 can also convert these virtual coins back into cash, a process similar to cryptocurrency trading. The system has raised regulatory concerns as crypto businesses 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 raise concerns about the security of users' financial data, especially given geopolitical sensitivities. As of press time, neither TikTok nor the FCA has commented. (Cryptonews)