Telegram Wallet, the third-party crypto service within the popular messaging app, is temporarily pausing its wallet feature within the app for U.K.-based users.
Suspension of Telegram Wallet Operations
The suspension is a signal that indeed, the wallet provider is working towards compliance with UK Financial Conduct Authority (FCA) laws. The company plans to register as a crypto asset provider and obtain licenses ahead of restarting these services. As stated in the announcement on September 25, in-app wallet features would not be accessible by users based in the UK until the full registration was complete. However, all users would be permitted to 'withdraw their assets to external wallets with no fees' in the period.
Compliance Efforts
The recent limitation is the result of the joining of the Telegram Wallet app into The Open Network, which called for the app's reorganization. Note that Telegram Wallet operates independently from Telegram itself, the decision is independent and separate from other actions earlier taken by the messaging platform or its CEO, Pavel Durov.
Separate from CEO's Legal Issues
The UK has started to become a burdensome environment for crypto firms, as the FCA introduces strict laws concerning money laundering and other financial crimes. It has been made crystal clear that any provider of crypto assets will have to meet high standards if they are to operate in the country. The Telegram Wallet app allows users to send and receive cryptocurrencies, including Bitcoin, Tether, and Toncoin.
As the wallet's suspension is temporary, the messaging platform Telegram continues to expand TON's crypto-friendly features to even more services, including sharing ad revenues with channel operators. The move comes after some recent legal issues for Telegram. Reportedly, Durov faced arrest in France over claims it enabled the distribution of illicit content on its service. The company subsequently revised its policies to include full cooperation with law enforcement on valid legal requests for user data.
The suspension of Telegram Wallet services for UK users highlights the company's efforts to comply with FCA regulations to continue offering the service in the country.
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