June 5, 2024
Telegram-Wallet-New-KYC-Rules-Provider-Shift
Latest Cryptocurrency News

Telegram Wallet: New KYC Rules, Provider Shift

Telegram Wallet, a third-party cryptocurrency wallet bot on Telegram, is implementing stricter Know Your Customer (KYC) rules. On May 29, users were informed about updates to the KYC system, mandating additional personal information for certain transactions. To access all default features, except withdrawals, users must now provide their name, phone number, and date of birth. These changes, effective from June 3, mark a significant shift from the previous KYC-free usage.

Source: Cointelegraph

Enhanced Identification Levels

The new KYC system introduces various identification tiers. Previously absent, users now face a “basic” level requiring personal details, limiting daily and monthly transactions to 3,500 euros ($3,780) and 35,000 euros ($37,800), respectively. No documentation is necessary at this stage.

Advancing to the “extended” level mandates national identification, unlocking higher transaction limits of up to 100,000 euros ($108,000) daily and 1 million euros ($1.08 million) monthly. For further increases, users must provide their residential address to access the “advanced” version, eliminating upper transfer limits. Notably, TON Space, Wallet’s self-custody sub-wallet, remains unaffected by these changes, allowing decentralized swaps and nonfungible token transfers.

Three tiers of Telegram’s Wallet updated KYC system. Source: Cointelegraph

Change in Service Provider and Data Transfer

In addition to the KYC modifications, Telegram Wallet announced a change in service provider, effective May 30, 2024. WOT Global Solution will now manage Wallet services, necessitating the transfer of all user data. This data includes names, addresses, phone numbers, transaction records, and other relevant information. Users were instructed to delete their accounts by May 20 if they wished to avoid data transfer. The transition aims to enhance service quality.

However, it underscores the custodial nature of Wallet, wherein users entrust their assets to a third party. Unlike self-custodial wallets, such as MetaMask or Ledger, Wallet operates with limitations and KYC requirements, aiming for user convenience in onboarding new users. Despite these changes, Telegram Wallet remains a prominent platform for buying cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Toncoin (TON), originally developed by Telegram.

Photo by Viralyft

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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