TikTok Under Scrutiny In UK For Cryptocurrency-Like Operations

According to BlockBeats, on October 17, TikTok is currently under scrutiny in the United Kingdom for allegedly operating in a manner similar to cryptocurrency exchanges. This development follows a report by cryptonews highlighting concerns raised by a compliance expert who advised the UK's Financial Conduct Authority (FCA) to conduct anti-money laundering and counter-terrorism financing checks on the short video platform. The compliance expert pointed out potential issues with TikTok's virtual token system, TikTok Coins, which can be purchased with fiat currency and used within the platform or during live streams. These tokens can also be converted back into cash, a process that mirrors cryptocurrency transactions. This has led to regulatory concerns, as cryptocurrency businesses are subject to stringent oversight. Critics argue that TikTok's handling of virtual currencies could attract the same level of scrutiny faced by cryptocurrency platforms. Additionally, the similarity to cryptocurrency transactions has raised concerns about the security of users' financial data. As of the time of reporting, neither TikTok nor the FCA has responded to requests for comments.