Telegram's Wallet Tightens KYC Rules and Changes Service Provider
Summary:
Telegram's Wallet, a third-party crypto bot, is set to tighten its Know Your Customer (KYC) rules and switch service providers. The modification will require users to disclose more personal data to use certain wallet features from June 3. The new system comprises three tiers, and each level corresponds to a different set of user information and transaction caps. Importantly, the update will not affect TON Space, Wallet's self-custody subdivision. Moreover, from May 30, 2024, Wallet's services will be supplied by WOT Global Solution, transferring all user data to the new provider.
Telegram's third-party cryptocurrency bot, Wallet, is set to enforce more rigorous Know Your Customer (KYC) regulations and switch its service provider. As of May 29, Wallet has notified users of the augmentations to its KYC procedures, demanding supplementary user data for specific transactions. A Cointelegraph update disclosed that Wallet users need to provide their full name, mobile number, and date of birth to gain access to all standard features, barring withdrawals, which will go into effect on June 3.
This substantial modification to its KYC system brings significant alterations to how users interact with Wallet on Telegram. Prior to this update, there was no need for KYC completion to utilize Wallet's services. With this newly implemented system, users must furnish some details to achieve the “basic” identification level, limiting daily crypto transactions to approximately 3,500 euros ($3,780) and monthly transactions to 35,000 euros ($37,800). No documents are necessary for this level.
Wallet's KYC notice stated that the limits are variable based on local exchange rates, and can differ from one country to another. The next level, the “extended” tier, demands national identification to initiate transactions up to 100,000 euros ($108,000) per day and 1 million euros ($1.08 million) per month. Users eyeing higher limits should supply their home address for the “advanced” tier, which removes the cap on fund transfer amounts.
Notably, restrictions have also been placed on card purchases and peer-to-peer transactions, however, these changes do not affect TON Space, Wallet’s self-custody counter-part, which facilitates decentralized swaps and nonfungible token transfers.
Wallet's services will henceforth be facilitated by a separate entity, WOT Global Solution, effective May 30, 2024. Upon this shift, all user information will be transferred over to WOT Global. This data includes names, addresses, phone numbers, transaction information and any additional data that Wallet holds on its users.
Operated by a standalone Telegram bot, Wallet enables the buying of cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and Toncoin (TON), initially launched by Telegram. As a custodial wallet, Wallet's design allows its users to entrust the holding of their crypto to a third party, in contrast to self-custodial crypto wallets like MetaMask, Trezor or Ledger that allow users to control their crypto without any limitations or KYC requirements.
As per Wallet chief operating officer Halil Mirakhmed, the intention of making Wallet a custodial solution was to streamline the process for new users. A response regarding the alterations was not received by Cointelegraph from Wallet at press time.
Published At
5/30/2024 12:17:50 PM
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