Regulators launch national security review of TikTok

Regulators launch national security review of TikTok 1
In brief: The United States is looking into TikTok’s parent company, ByteDance, after critics and lawmakers have been criticizing its controversial policies and potential ties to the Chinese government. The company denies those claims, but it will have to convince regulators as well.

TikTok’s meteoric rise hasn’t been without its kinks, and at least two US senators have recently set off the alarm bell about the potential issues around parent company, ByteDance. A lot of younger people are drawn to work for the app — even Facebook employees — but all of this has also drawn the attention of regulators.

According to a new report from Reuters, the US Committee on Foreign Investment (CFIUS) has opened a national security review of ByteDance, a Chinese company that acquired lip-syncing app Musical.ly in 2017 for $1 billion and later rebranded it as TikTok.

The problem with the acquisition is that ByteDance didn’t ask for approval from the CFIUS, so the committee now has “the scope to investigate it.” Back in March, the CFIUS looked into Kunlun Tech’s buyout of Grindr, and found that the foreign ownership had national security risks that were too high for comfort, so it pushed for a sale.

TikTok has been facing a lot of scrutiny as of late due to its alleged ties with the Chinese government and loose privacy guidelines, the latter of which have resulted in FTC fining it to the tune of $5.7 million. Then it was found that the app censored content related to the Hong Kong protests, which raised the eyebrows of two US senators who promptly called the practice into question in a letter they sent to intelligence agencies.

As for ByteDance, last week they published a statement defending itself against the scrutiny. They say TikTok didn’t remove content “based on sensitivities related to China,” and that it wouldn’t do so if asked by the Chinese government.

The company explained that it doesn’t operate in China and that US user data is stored locally with “backup redundancy in Singapore.” And while it didn’t comment on the “ongoing regulatory processes,” the company believes it has “made clear that we have no higher priority than earning the trust of users and regulators in the US.”

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

The Largest Crypto Scams Of 2022 (So Far)
The Largest Crypto Scams Of 2022 (So Far)
June 14, 2022
Scammers
How Do Scammers Entice Their Prey?
May 10, 2022
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin21,435 0.01 % 0.46 % 4.70 %
Ethereum1,243.8 1.09 % 0.75 % 14.34 %
Tether1.001 0.04 % 0.13 % 0.01 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
BNB238.89 0.13 % 1.13 % 10.52 %
XRP0.3665 0.18 % 0.59 % 13.70 %
Binance USD1.002 0.24 % 0.04 % 0.09 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana42.11 0.35 % 0.87 % 36.40 %
Polkadot8.080 0.24 % 2.46 % 10.33 %

bitcoin
Bitcoin (BTC) $ 21,507.00
ethereum
Ethereum (ETH) $ 1,248.78
tether
Tether (USDT) $ 0.999877
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 239.68
xrp
XRP (XRP) $ 0.368005
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.500304
solana
Solana (SOL) $ 42.29
polkadot
Polkadot (DOT) $ 8.16