Saturday, June 22, 2024

Telegram Wallet Tightens Security: KYC Required

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Telegram Wallet Gets Stricter: New KYC Rules and Service Provider

Changes are afoot for Telegram’s built-in cryptocurrency wallet. Users will soon face stricter Know Your Customer (KYC) requirements and a new service provider.

On May 29th, Telegram Wallet announced updates to its KYC system. Starting June 3rd, most features will require users to provide their name, phone number, and date of birth. This excludes withdrawals, which remain unrestricted.

This marks a significant shift, as previously, no KYC verification was needed to use the wallet’s basic features.

Three Tiers of Verification and Limits

The new system introduces three verification levels. The basic level, requiring no documentation, allows daily transactions up to €3,500 (around $3,780) and monthly transactions up to €35,000 (around $37,800). These limits may vary by country.

For higher limits, users can choose the “extended” level by providing national identification. This unlocks daily transactions up to €100,000 (around $108,000) and monthly transactions up to €1 million (around $1.08 million).

The “advanced” level, requiring residential address verification, removes transaction limits altogether.

It’s important to note that these changes do not apply to TON Space, the wallet’s self-custody sub-wallet. TON Space allows users to perform decentralized swaps and transfer non-fungible tokens (NFTs) without restrictions.

New Service Provider for Telegram Wallet

Another significant update is the change in service provider. Starting May 30th, 2024, WOT Global Solution will handle all Telegram Wallet operations. This means all user data, including names, addresses, phone numbers, transaction data, and any other information collected by Telegram Wallet, will be transferred to WOT Global Solution.

Users who wish to opt-out of this data transfer had until May 20th to delete their Telegram Wallet accounts.

Why KYC and Custodial Wallet?

Telegram’s Wallet operates as a custodial wallet. This means users entrust their cryptocurrency holdings to a third party instead of directly owning them. This design allows stricter controls and KYC verification, unlike self-custodial wallets like MetaMask or Trezor, which offer complete control without limitations.

Telegram Wallet reportedly aims to simplify the onboarding process for new users through a custodial model.

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Author: Sb

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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