A United Kingdom-based regulatory body raised concerns that TikTok’s virtual currency could be used by unscrupulous groups in their money laundering activities.
The UK’s Financial Conduct Authority (FCA) underscored the increasing concerns surrounding TikTok Coins and served as a cautionary note on the platform. Some feared that the virtual currency could be tapped to elude traditional regulations and policies, which are crafted to curb anti-money laundering activities.
FCA is a financial regulatory office that keeps an eye on and monitors financial institutions in the UK to ensure they abide by the existing regulations that aim to stop money laundering and financing of terrorism.
TikTok Can Be A Tool For Money Laundering
The UK’s financial watchdog said that the agency received a letter from a compliance consultant previously working for a premier private bank to set alarm bells ringing on the app being utilized as an unlicensed cryptocurrency platform.
TIKTOK ACCUSED OF ILLEGALLY OPERATING AS A CRYPTO EXCHANGE IN THE UK
– A former compliance consultant accused TikTok of acting as an unregistered crypto exchange in a letter to the UK’s Financial Conduct Authority (FCA).
– TikTok’s reward system allows users to buy virtual… https://t.co/YqvGemx8jK pic.twitter.com/Yrd3OzkkxI
— BSCN (@BSCNews) October 15, 2024
According to the complaint letter, the popular social media platform permits its users to become a hub for anti-money laundering acts since its virtual currency can be exchanged for real money, saying that the platform does not have sufficient controls to ensure that its system is not being exploited for illegal activitie
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Author: Christian Encila
