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.

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.

The value of Ethereum (ETH) sent into exchanges has surpassed $1 billion just two days after the altcoin’s price climbed to $2,600. This sudden influx of ETH onto exchanges often signals a potential shift in market sentiment, as traders may be preparing to cash out on recent gains.

With Ethereum’s price swinging sideways, the question now is whether this inflow will lead to increased selling pressure for one of the market’s top assets.

Ethereum Holders Book Quick Gains

On October 13, Glassnode data revealed that 122,164 ETH were held on exchanges. However, as of this writing, that number has surged to 390,432 ETH. At the current price of ETH, this represents a value of over $1 billion.

Exchange inflow shows the number of coins leaving external wallets and going into centralized platforms. The significant increase in ETH on exchanges could indicate rising selling pressure. Notably, more coins being transferred to exchanges often suggests that holders may be preparing to liquidate their assets. 

If sustained, this could have bearish implications for the cryptocurrency’s short-term price movement. Moreover, this development is also another reason ETH’s price might struggle to reach $3,000.

Read more: Ethereum ETF Explained: What It Is and How It Works

A further on-chain assessment suggests that crypto whales have contributed to Ethereum’s recent price decline. According to IntoTheBlock, the large holders’ netflow to exchange ratio has increased over the past seven days.

This ratio offers insight into whale activity. When it decreases, it indicates that whales are withdrawing assets from exchanges, typically signaling a bullish trend as they may be holding long-term. 

Conversely, the recent increase in the ratio suggests that these large holders are sending their Ethereum to exchanges, potentially for sale. This increase in exchange inflows from whales is often seen as a bearish sign, as it can create downward pressure on the cryptocurrency’s price.

ETH Price Prediction: $2,440 Pullback Looms

On the daily chart, the Chaikin Money Flow (CMF) has fallen below the zero signal line. The CMF is a technical oscillator that measures accumulation and distribution in the market. When it increases, accumulation dominates, suggesting that the price can increase.

A decrease, on the other hand, indicates a rising level of distribution. For ETH, it is the latter, as the indicator suggests that the cryptocurrency could drop below $2,500. 

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

Should this be the case, Ethereum’s price may decline to $2,440. However, if bulls begin to buy ETH in large volumes again, the cryptocurrency’s value could climb toward $3,018.