Before, users did not need to complete any KYC to use Telegram’s Wallet by default.
Telegram’s third-party crypto wallet bot, dubbed Wallet, has made some important changes to its features to enhance user security and compliance. A major part of the updates sees Wallet introducing stricter Know Your Customer (KYC) rules while also transitioning to a new service provider WOT Global Solution.
Wallet shared the announcement on May 29, mandating all users to update their personal information before they can perform certain transactions. Once the new KYC regime takes effect on June 3, all default features, excluding withdrawals, will require updated account details, such as name, phone number, and date of birth.
Telegram’s Wallet Introduces Three-Tier KYC System
Wallet’s new KYC system is a significant shift from its previous operations. Recall that, before, users did not need to complete any KYC to use Telegram’s Wallet by default.
The new system, however, comes with three tiers of identification to ensure improved security and compliance.
Firstly, there is the basic identification level. Here, users just need to provide minimal information to attain this level. However, their incoming crypto transactions are limited to €3,500 ($3,780) per day and no more than €35,000 ($37,800) per month. No documentation is required for this tier.
The extended identification level is the next one. This KYC level requires users to submit their national identification, allowing for transactions up to €100,000 ($108,000) daily and €1 million ($1.08 million) monthly.
Lastly, the third tier is the advanced identification level. Access to this KYC level requires users to provide their residential address. By this action, the upper limit on fund transfers will then be removed.
Meanwhile, it appears that the transaction limits will vary across different countries. A statement from Wallet reads:
“These limits are approximate and depend on local exchange rates.”
Additionally, significant thresholds are also placed on card purchases and peer-to-peer transactions. However, the changes will not affect TON Space, Wallet’s self-custody sub-wallet.
Transitions to New Service Provider
Alongside the new KYC rules, Wallet is also transitioning its services to a new provider. Starting May 30, 2024, WOT Global Solution will take over Wallet services. As part of this change, all user data, including names, addresses, phone numbers, and transaction data, will be transferred to WOT Global Solution. Users who wished to prevent their data from being transferred needed to have deleted their Wallet accounts by May 20. Wallet says:
“This change is part of our ongoing efforts to provide better quality services to you.”
With these updates, Telegram’s Wallet aims to enhance security and regulatory compliance, ensuring a safer and more reliable user experience.
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