The United States continues to increase its legal pressure on cryptocurrency markets, while the latest developments come from the UK. Interestingly, the news does not involve the regulatory body directly causing issues. A senior compliance officer from TikTok has filed a complaint with the Financial Conduct Authority (FCA).
TikTok and Cryptocurrencies
According to a report by the Financial Times, a former compliance advisor from a major bank sent a letter to the FCA. This letter claims that TikTok provides unlicensed cryptocurrency services to its UK customers.
The complaint alleges that TikTok’s virtual currency can be indirectly exchanged for fiat currency through the platform’s reward system. Therefore, it is not easy to classify the service as a typical cryptocurrency exchange at first glance.
“TikTok facilitates money transfers through the reward program and engages in exchanges of cryptocurrency assets for money or other cryptocurrencies.”
TikTok integrates local currencies within the app to send gifts to content creators. Similarly, Telegram has revealed a roadmap for gifts that can be converted into NFTs. The classification of TikTok Coins as cryptocurrency remains unclear according to the Financial News report.
