TikTok may soon face scrutiny from the Financial Conduct Authority (FCA) over concerns that the platform is operating an unregistered crypto exchange in the UK.

This potential regulatory issue adds to TikTok’s growing list of challenges, including ongoing criticism regarding child safety and privacy concerns.

TikTok’s In-App Currency Attracts UK FCA Attention

Local media reported that a compliance expert wrote a letter to the FCA, the UK’s financial watchdog, detailing how TikTok may be operating an unregistered crypto exchange in the country. The allegation focuses on the platform’s virtual coin system and creator rewards program. Based on the report, these qualify as crypto asset-related activities under the FCA’s framework.

TikTok’s virtual economy, underpinned by its in-app currency called ‘TikTok Coins,’ allows users to purchase virtual tokens with real money. These can be exchanged for virtual gifts, and holders can send them to their favorite content creators.

For the platform, this system enhances user engagement and provides creators with a revenue stream. However, compliance experts see it as a tactic to facilitate unregulated financial transactions, citing regulatory loopholes in the FCA’s oversight.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

According to compliance experts, TikTok’s virtual coin system should be subject to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations as enforced by the FCA. This is because it enables the exchange of virtual assets for fiat currency.

Notably, the FCA’s list of approved firms shows TikTok has not registered with the regulator as either a money service business or a digital asset exchange. These two categories would require the social media platform to comply with stringent financial oversight.

Based on the letter to the FCA, the lack of such a registration creates a risk of inadequate supervision. Specifically, the origin of funds used to purchase TikTok Coins remains unclear, making the platform more susceptible to use for illicit activities, including money laundering.

The compliance expert also highlighted TikTok’s lack of transparency in verifying user accounts, particularly those with minimal information. According to the letter, this lack of clear identification could allow users to engage in illicit activities without detection.

In hindsight, however, TikTok banned cryptocurrency advertising on its platform in 2021. Still, many crypto bloggers using the platform continue to lure users into dubious crypto schemes. Last week, TikTok launched a new clicker game called SonicX based on the Solana blockchain.

UK FCA Increases Regulatory Scrutiny for Digital Assets

As these fears spur, it is worth mentioning that the FCA has been stepping up its efforts to regulate the digital asset sector. So far, only 48 crypto firms stand registered on the regulator’s list out of approximately 500 applications. This reflects the UK financial watchdog’s stringent standards, with an 87% rejection rate for crypto firms applying for licenses.

In July, the regulator reinforced its commitment to this mission by fineing Coinbase’s UK division for failing to meet AML standards.

“FCA just fined Coinbase UK subsidiary $4.5 million for serving high risk customers,” one user on X commented at the time.

On the other hand, TikTok’s virtual economy is not the first regulatory clampdown against social media-related platforms. In January, concerns were raised over the Telegram tap-to-earn game Notcoin, a meme coin circulating within the TON blockchain’s ecosystem, with its legitimacy questioned.

Meanwhile, the FCA’s expected probe into TikTok adds to the platform’s list of challenges. According to Forbes, thirteen state attorneys general in the US and the District of Columbia have levied a multi-state lawsuit against TikTok. The lawsuit centers on the platform “creating an intentionally addictive app” that is allegedly harming teenagers and children.

MoonPay, a cryptocurrency payment gateway, has announced its integration with Ripple, expanding partnerships for both companies as they work to enhance service delivery.

This move aligns with MoonPay’s vision of making cryptocurrency more accessible by offering simplified on-ramps for everyday users.

MoonPay Announces Ripple Partnership

The partnership represents a key milestone for MoonPay, granting its global user base seamless access to Ripple’s native token. This integration enables users to buy, manage, and store XRP directly within the MoonPay ecosystem.

“In partnership with Ripple, you can now buy, store, and manage your XRP directly within your MoonPay account. Whether you are a new recruit or a loyal soldier, welcome home,” MoonPay announced.

Read more: How To Buy XRP and Everything You Need To Know

In May 2024, MoonPay integrated PayPal for easier crypto purchases. This enabled users to buy digital assets via bank transfers through a streamlined and familiar interface. The latest partnership, therefore, is another step forward in simplifying cryptocurrency transactions for MoonPay’s growing user base.

The ability to buy crypto through PayPal, coupled with MoonPay’s latest XRP purchase features, reinforces the platform’s growing efforts in the mainstreaming of digital assets. It also highlights the growing relevance of Ripple’s powering token.

MoonPay’s integration is seen as a vote of confidence in XRP’s future despite Ripple’s legal challenges with the US SEC. As both companies expand their product offerings, this partnership places MoonPay and Ripple at the forefront of efforts to make crypto more accessible.

Ripple CLO Outlines Ripple vs. SEC Appeals Timeline

Meanwhile, Ripple remains embroiled in a legal battle with the SEC. Since 2020, the company has faced allegations that its sale of XRP tokens amounted to an unregistered securities offering. This high-profile case has drawn significant attention from the community, as its outcome could have far-reaching implications.

In July 2023, Ripple scored a partial victory but remains under legal pressure, as the SEC is still appealing parts of the ruling. The case remains unresolved, with the XRP community riding on hope. This leaves Ripple’s long-term regulatory standing uncertain, with the outcome still a key issue that could shape the future of XRP’s status.

Speaking to Fox Business correspondent Eleanor Terret, Ripple chief legal officer Stuart Alderoty reportedly outlined the timeline for the appeals process between Ripple and the SEC. Alderoty noted that the SEC has until Thursday, October 17, to submit Form C, which will provide insight into the specifics of its intended appeal.

Following this, Ripple reportedly plans to file its own Form C seven days later, detailing the arguments for its cross-appeal. This sequential filing process marks the beginning of what is anticipated to be a lengthy and complex legal battle.

Once both parties have submitted their respective forms, they will agree on a briefing schedule. The SEC will have up to 90 days to submit its opening brief. Alderoty expressed his expectation that the SEC would utilize the full 90 days to present a comprehensive account of its legal arguments.

Ripple will subsequently file a response and its own brief, kicking off an extensive briefing process projected to extend through July 2025. This timeline suggests a protracted legal engagement, highlighting the significant stakes involved.

Read More: Everything You Need To Know About Ripple vs. SEC

BeInCrypto data shows that XRP’s price has risen modestly by 1.17% following the news. As of writing, the token is trading at $0.5495.

Ripple (XRP) price has been relatively stable with no clear trend direction emerging. The RSI indicator shows a neutral sentiment, suggesting a balance between buying and selling activity. Meanwhile, the Chaikin Money Flow has turned positive, pointing to some accumulation, but the buying pressure remains modest.

The EMA lines are still in a bearish alignment, though a bullish crossover may be on the horizon. If buying pressure strengthens, XRP could potentially break through key resistance levels in the coming days.

XRP RSI Has Been Neutral For Days

XRP’s Relative Strength Index (RSI) is currently at 58.59 and has been hovering between the 45 to 65 range for nearly a week. This indicates a lack of strong price momentum in either direction. Typically, an RSI around 50 suggests neutral sentiment, where buyers and sellers are relatively balanced.

The recent RSI movement within this range implies that XRP’s price has been relatively stable, neither reaching overbought nor oversold conditions, which often characterizes a market waiting for stronger cues to establish a trend.

Read More: XRP ETF Explained: What It Is and How It Works

The RSI is a momentum oscillator ranging from 0 to 100, commonly used to assess whether an asset is overbought or oversold. An RSI above 70 typically indicates overbought conditions, suggesting a potential price correction. An RSI below 30 signals oversold conditions, which could present a buying opportunity.

With XRP’s RSI at 58.59, it shows moderate buying strength, but not enough to push the asset into overbought territory. This level indicates that while there is some positive sentiment around XRP, it is not yet strong enough to drive a significant trend. This leaves the price direction uncertain and suggesting a continued consolidation phase.

Ripple CMF Is Now Positive

XRP’s Chaikin Money Flow (CMF) indicator is currently at 0.08, recovering from a recent dip to -0.10. This shift from negative to positive suggests that buying pressure has started to outweigh selling pressure, indicating some accumulation of XRP.

However, despite turning positive, the value of 0.08 reflects only a modest level of capital inflow, suggesting that the buying momentum is still relatively weak.

The Chaikin Money Flow is a technical indicator that measures the buying and selling pressure of an asset, based on the closing price and volume of trades. Positive CMF values indicate net buying pressure, whereas negative values suggest net selling pressure.

Although XRP’s current CMF value of 0.08 shows signs of buying activity, it remains significantly below the 0.15 to 0.20 levels that were seen during XRP’s last rally in late September. This suggests that while the buying sentiment has improved, it is not yet at the strength needed to trigger a sustained upward move.

XRP Price Prediction: A 22% Price Surge Ahead?

XRP’s EMA (Exponential Moving Average) lines are currently in a bearish formation, with shorter-term EMAs positioned below the longer-term EMAs. This alignment suggests that the prevailing trend has been downward. However, the short-term EMAs now appear to be moving upwards, potentially crossing above the long-term EMAs.

If this crossover occurs, it could signal a shift to a bullish trend, where buying pressure starts to dominate, potentially sparking a new upward momentum in XRP’s price.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

EMA lines are moving averages that assign greater weight to recent price data, making them more responsive to short-term market changes. Traders often use EMAs to identify trends and potential reversals. When short-term EMAs cross above long-term EMAs, it is typically considered a bullish signal. That indicates that recent buying strength could lead to a sustained rally.

If this uptrend materializes, XRP could test resistance levels at $0.61, and potentially push further to $0.63 or even $0.66. That would depend on the strength of the buying momentum. However, if the bullish crossover fails to materialize, XRP might instead continue its bearish trend, potentially falling to the support levels of $0.50 or even as low as $0.43 if selling pressure increases.