TikTok - a crypto exchange?
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TikTok has been accused of operating as a crypto exchange in the UK due to its virtual currency system.
TikTok Coins can be purchased with fiat. Virtual gifts can be bought with these coins, which can then be converted by creators into Diamonds, which can then be exchanged back to fiat.
An anonymous 'compliance expert' said in a letter to the FCA that this is effectively the exchange of virtual assets to fiat.
TikTok is not registered with the FCA as an exchange or money service business.
The allegations aren't limited to the UK. TikTok has been referred to Australia's AML authority, and accused of money laundering, among other things, in Utah.
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