Thursday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

30 May 2024

Major Changes in Telegram Wallet’s KYC Policy and Service Provider

Telegram Wallet, a third-party cryptocurrency wallet bot on Telegram, is introducing significant updates, including stricter Know Your Customer (KYC) rules and a new service provider.

Updated KYC Requirements for Telegram Wallet Users

As of May 29, Telegram Wallet has informed users about major changes to its KYC system. Users will now need to provide additional personal information for certain transactions. Previously, no personal details were required to use the default version of the wallet.

Starting June 3, all features, except withdrawals, will require updated account details, including name, phone number, and date of birth. This represents a significant shift from the previous policy where no KYC was needed for default wallet usage.

Introducing Three Tiers of KYC Compliance

Telegram Wallet’s new KYC system will have three tiers:

  1. Basic Identification: Requires basic personal information, allowing incoming crypto transactions up to 3,500 euros ($3,780) per day and 35,000 euros ($37,800) per month, without documentation.

  2. Extended Identification: Requires a user’s national ID to enable transactions up to 100,000 euros ($108,000) daily and 1 million euros ($1.08 million) monthly.

  3. Advanced Identification: Requires proof of residential address, removing any upper limits on fund transfers.

These limits may vary based on local exchange rates and country-specific regulations.

Changes in Service Provider and Data Management

From May 30, 2024, Wallet services will be managed by WOT Global Solution. All user data, including names, addresses, phone numbers, and transaction data, will be transferred to this new provider. Users who did not wish to have their data transferred were advised to delete their accounts by May 20.

Understanding the Impacts of These Changes

Telegram’s Wallet operates as a custodial wallet, meaning users do not directly hold their assets but entrust them to a third party. This differs from self-custodial wallets like MetaMask, Trezor, or Ledger, which do not impose KYC requirements or transaction limits.

Halil Mirakhmed, Wallet’s COO, explained in November 2023 that opting for a custodial solution was intended to simplify the onboarding process for new users.

Despite these substantial changes, there has been no official comment from Telegram’s Wallet regarding the updates at the time of publication.

For more details on these updates, users are encouraged to refer to the official announcements and consider how these changes may impact their usage of Telegram Wallet.