The third-party cryptocurrency wallet bot on Telegram, known as Wallet, is undergoing significant transformations. These changes include the implementation of stricter Know Your Customer (KYC) rules and a transition to a new service provider.
Wallet has recently informed its users about the updates to its KYC system, which now mandates additional personal information for specific transactions. Users are now required to provide their name, phone number, and date of birth to access all default features except withdrawals.
Commencing from June 3, users must update their account details to continue using all features other than withdrawals. With these alterations, the user experience on Telegram's Wallet has been dramatically impacted. Previously, users could utilize the Wallet without completing any KYC procedures by default.
The new KYC system introduced by Wallet comprises three tiers: basic, extended, and advanced. To achieve the basic identification level, users must provide some information, enabling crypto transactions up to 3,500 euros per day and 35,000 euros per month without needing any documentation. The extended level requires national identification for transactions up to 100,000 euros daily and 1 million euros monthly. The advanced tier demands users to provide their residential address to unlock unlimited fund transfers.
Moreover, the updated KYC system imposes significant restrictions on card and peer-to-peer purchases. Notably, these changes do not affect TON Space, the self-custody sub-wallet of Wallet, which facilitates decentralized swaps and nonfungible token transfers.
Additionally, Wallet's services are now handled by WOT Global Solution, a different company from the previous service provider. The transition occurred from May 30, 2024, onward, with all user data being transferred to WOT Global Solution. Users had until May 20 to delete their Wallet accounts if they preferred not to have their data transferred.
Telegram's Wallet, operated by a third-party bot, allows cryptocurrency purchases like Bitcoin, Ether, and Toncoin. Unlike self-custodial wallets, Telegram's Wallet functions as a custodial wallet, meaning users trust a third party to hold their assets.
The decision to maintain Wallet as a custodial solution was influenced by the aim to simplify the onboarding process for new users. Despite these changes, Telegram's Wallet declined to respond to inquiries regarding the updates at the time of publication.
