• Users are allowed to buy coins by using the real money and can also use it as a gift. Also, they can convert TikTok coins into cash. 

  • The Financial Conduct Authority has so far taken action in October 2023, against the cryptocurrency companies which were not following the new financial promotional regulations. 

  • Without any registration of anti-money laundering, the roots of finances through which virtual coins have been bought is undetermined. 

TikTok, a social media app to create short-form videos is under inspection following the claims of operating a crypto exchange in the United Kingdom. 

On October 15, a trustworthy media source reported that the Financial Conduct Authority (FCA) was informed by an expert that the social media application undertakes money laundering as well as terrorist financing checks. 

The expert has also mentioned that the digital tokens available over the application can be transformed into real money by using its creator program. The inspection set its foot from the digital currency system of the application, TikTok Coins. 

Users concerned about Financial data security 

Users are allowed to buy coins by using the real money and can also use it as a gift. Also, they can convert TikTok coins into cash. The system mimics the crypto currency transactions completely. 

Now, many of the users are concerned about their financial data security as the transactions are the same as that of crypto. Along with this, the platform will carry on the same probe that many cryptocurrency platforms face at the current scenario. 

The expert has also mentioned in his letter that, “TikTok is also conducting its rewards programme, in which the platform is making an arrangement to exchange crypto assets for money or vis-a-versa. However, TikTok chose to remain silent over this matter. 

Anti-money laundering registration compulsory 

The expert further went on to say that without any registration of anti-money laundering, the roots of finances through which virtual coins have been bought is undetermined. 

The Financial Conduct Authority has so far taken action in October 2023, against the cryptocurrency companies which were not following the new financial promotional regulations. This suppression resulted in more than thousand warnings, motioning a fierce demand to limit the unregistered crypto bodies indulged in illegal services in the United Kingdom. 

The rejection rate for the crypto companies who were willing to apply for licenses were about 87%.