Wallet, a third-party cryptocurrency wallet bot accessible on Telegram messenger, is undergoing significant alterations, including the implementation of more stringent Know Your Customer (KYC) protocols and transitioning to a new service provider.
As of May 29, Telegram's Wallet notified its users about several revisions to its KYC procedures, necessitating additional personal details for certain transactions.
Wallet users will now be required to provide their name, phone number, and date of birth to access all default features of the wallet, excluding withdrawals.
The announcement from Wallet specifies that commencing June 3, updated account details will be mandatory for all features, except withdrawals.
The introduction of Wallet's new KYC system signifies significant alterations to the user experience on Telegram's Wallet. Previously, users were not obligated to undergo any KYC procedures to utilize Telegram's Wallet by default.
Wallet's new KYC method has three layers
Users will no longer be able to obtain the "basic" identification level without providing at least some information, and inbound cryptocurrency transactions will be limited to 3,500 euros ($3,780) per day and 35,000 euros ($37,800) per month. Documentation is not needed for this level of identification.
The KYC warning for the wallet states, "These limits are approximate and depend on local exchange rates." It also notes that the limits may change depending on the country.
The user must provide their national identification to access transactions up to 100,000 euros ($108,000) per day and 1 million euros ($1.08 million) per month on the following tier, known as the "extended" version.
The "advanced" version eliminates a cap on the maximum amount that can be transmitted, and users who desire a greater limit must unlock it by supplying their residential address.
Both card purchases and peer-to-peer purchases are subject to significant limitations. The self-custody sub-wallet TON Space, which enables users to conduct decentralized swaps and move nonfungible tokens, is exempt from the modifications.
Wallet on Telegram is currently managed by a different business
Telegram's Wallet also declared that a new business will be handling its services in addition to the message it sent out. WOT Global Solution will start offering wallet services on May 30, 2024.
The announcement states that all user information from Wallet will be moved to WOT Global Solution. This includes personal details like names, addresses, phone numbers, transaction history, and any other data Wallet has on its users. Users who wish to avoid this transfer should have deleted their Wallet accounts before May 20.
The company explains that this change is part of their ongoing efforts to improve the quality of their services. Telegram's Wallet is managed by a third-party bot, enabling users to purchase cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Toncoin (TON), which was originally developed by Telegram.
Why the Wallet on Telegram can restrict cryptocurrency transactions
Telegram's Wallet functions as a custodial wallet by design, which means that users entrust a third party to retain their cryptocurrency rather than directly owning their assets.
On the other hand, consumers can hold their cryptocurrency directly without any restrictions or KYC when using self-custodial crypto wallets like MetaMask, Trezor, or Ledger.
May 2024, Cryptoniteuae