Telegram Wallet enforces new KYC rules and changes its service provider to enhance security and compliance.
In a recent shift, Telegram Wallet, a third-party cryptocurrency wallet bot integrated within the Telegram messenger app, is implementing stricter Know Your Customer (KYC) regulations and transitioning to a new service provider. These changes, effective from May 29, have introduced new requirements for users, impacting their overall experience with the wallet.
New KYC Requirements for Telegram Wallet Users
Telegram Wallet’s latest update mandates that users provide additional personal information for conducting certain transactions. Previously, the default version of the wallet did not require any personal information. However, the new system now requires users to disclose their name, phone number, and date of birth to access most features, excluding withdrawals.
Effective June 3, updated account details will be necessary for all functionalities except withdrawals. This move aims to enhance security and compliance within the platform.
The updated KYC system categorizes users into three identification tiers. Each tier determines the limits on incoming crypto transactions and the level of documentation required.
- Basic Identification Level: Users in this tier can perform transactions up to 3,500 euros per day and 35,000 euros per month. This level does not require any documentation but necessitates basic personal information. The limits might vary based on local exchange rates.
- Extended Identification Level: For higher transaction limits, users must provide a national ID. This tier allows daily transactions up to 100,000 euros and monthly transactions up to 1 million euros.
- Advanced Identification Level: Users seeking unlimited transaction capabilities must provide their residential address. This tier removes any upper limit on the amount that can be transferred.
In addition to transaction limits, significant restrictions have been placed on card purchases and peer-to-peer transactions. These new rules aim to bolster security and ensure compliance with regulatory standards. However, these changes do not affect TON Space, Wallet’s self-custody sub-wallet. TON Space users can continue performing decentralized swaps and transferring nonfungible tokens without these new requirements.
Change of Service Provider
Alongside the new KYC rules, Telegram Wallet has also announced a change in its service provider. Starting May 30, 2024, WOT Global Solution will take over as the new provider for Wallet services. This transition includes the transfer of all user data, such as names, addresses, phone numbers, and transaction data, to WOT Global Solution.
Users were advised to delete their Wallet accounts by May 20 to avoid the data transfer. This change aims to improve the quality of services provided by the wallet, as stated in the announcement.
Telegram Wallet operates as a custodial wallet, meaning that users do not directly own their assets. Instead, a third party holds the crypto on behalf of the users. This design choice facilitates easier onboarding of new users, as it reduces the complexity of managing their own crypto holdings.
In contrast, self-custodial wallets like MetaMask, Trezor, or Ledger allow users to have full control over their assets without any KYC requirements or transaction limits. However, these wallets require a higher level of user knowledge and responsibility.
The implementation of these new KYC rules and the change in service provider have garnered mixed reactions from the crypto community. Some users appreciate the increased security and compliance measures, while others are concerned about the additional personal information required and the implications for privacy.
Despite these concerns, the changes align with broader industry trends towards increased regulation and oversight.