Telegram’s Wallet, a third-party cryptocurrency wallet mini app on the Telegram messenger, is undergoing significant changes. The latest updates include stricter Know Your Customer (KYC) rules and a change in service provider. Users will now be required to provide additional personal information, such as their name, phone number, and date of birth, to use all of the wallet’s default features, except for withdrawals. These changes aim to enhance the user experience and ensure compliance with regulatory requirements.
Previously, some Telegram Wallet users did not have to provide any personal information to use the default version of the wallet, while others were required to provide certain data. The new KYC system introduces three tiers of identification levels. The “basic” level requires users to provide some information and limits incoming crypto transactions to 3,500 euros ($3,780) per day and 35,000 euros ($37,800) per month. The “extended” version requires national identification and allows transactions up to 100,000 euros ($108,000) daily and 1 million euros ($1.08 million) monthly. The “advanced” version, which removes the upper limit on fund transfers, requires the user’s residential address.
There are also significant limits on card purchases and peer-to-peer transactions. However, these changes do not affect TON Space, Wallet’s self-custody sub-wallet, which enables decentralized swaps and nonfungible token transfers.
Furthermore, Telegram’s Wallet announced that its services will now be provided by a different company, WOT Global Solution, starting from May 30, 2024. This change aims to improve the quality of services provided. As a result, all user data will be transferred to WOT Global Solution, including names, addresses, phone numbers, and transaction data. The data will be securely stored and used solely for the purpose of using Wallet.
It’s important to note that Telegram’s Wallet operates as a custodial wallet, meaning users do not directly own their assets but instead entrust their crypto holdings to a third party. This is in contrast to self-custodial wallets like MetaMask, Trezor, or Ledger, which allow users to hold their crypto directly without any limits or KYC requirements.
Overall, these changes to Telegram’s Wallet aim to enhance security, compliance, and user experience while ensuring the smooth operation of the wallet’s services.