Regulation

Is TikTok an unregistered crypto exchange? Yes, this compliance expert tells the FCA

Social media platform should go through money-laundering checks because virtual coins can be exchanged for real cash, watchdog told

TikTok allows its users to buy virtual coins which can be used to purchase virtual gifts for creators on the platform
TikTok allows its users to buy virtual coins which can be used to purchase virtual gifts for creators on the platform Photo: Cheng Xin/Getty Images

TikTok could be operating an unregistered crypto exchange in the UK, a compliance expert has told the regulator.

In a letter sent to the FCA and seen by Financial News, the compliance professional says that because virtual tokens can be indirectly exchanged for real money through the video-sharing platform’s creator programme, the firm should have to go through the watchdog’s money laundering and terrorist financing checks.

WSJ Logo