Telegram, the popular messaging app, has announced significant changes to its third-party crypto wallet bot, Wallet, in a bid to enhance user security and compliance. The updates include the introduction of stricter Know Your Customer (KYC) rules and a transition to a new service provider, WOT Global Solution.
The announcement, made on May 29, mandates all Wallet users to update their personal information before they can perform certain transactions. The new KYC regime will take effect on June 3, requiring users to provide updated account details such as name, phone number, and date of birth. This marks a significant shift from the previous operations of Wallet, where users did not need to complete any KYC to use the service by default.
The new KYC system introduced by Wallet includes three tiers of identification. The basic identification level requires minimal information from users and limits incoming crypto transactions to €3,500 ($3,780) per day and €35,000 ($37,800) per month. The extended identification level necessitates users to submit their national identification, allowing for transactions up to €100,000 ($108,000) daily and €1 million ($1.08 million) monthly. The advanced identification level, the highest tier, requires users to provide their residential address, removing the upper limit on fund transfers.
It is important to note that transaction limits may vary across different countries due to local exchange rates. Additionally, significant thresholds are placed on card purchases and peer-to-peer transactions, although these changes will not affect TON Space, Wallet’s self-custody sub-wallet.
In addition to the new KYC rules, Wallet is also transitioning its services to a new provider, WOT Global Solution, starting May 30, 2024. As part of this change, all user data, including names, addresses, phone numbers, and transaction data, will be transferred to the new service provider. Users who wished to prevent their data from being transferred had until May 20 to delete their Wallet accounts.
Wallet stated that these changes are part of their ongoing efforts to provide better quality services to users and to enhance security and regulatory compliance, ensuring a safer and more reliable user experience. The updates aim to strengthen user security and compliance within the Telegram ecosystem, reflecting the growing importance of regulatory standards in the cryptocurrency space.