What Users Should Know About Telegram Wallet KYC Changes
Telegram is a popular messaging app with over 700 million monthly active users. The Telegram app has a mini-app, which is an e-wallet, that allows its users to buy crypto, like Bitcoin, Tether, Ethereum, and Toncoin.
In recent news, Telegram has announced that they will be changing the KYC (Know Your Customer) requirements for their wallet and switching service providers to WOT Global Solutions. The change is coming about quickly. As soon as June 3rd, Telegram wallet users will need to comply with the new KYC requirements by providing personal details like their name, phone number, and birthday to retain access to the wallet’s features.
Some users agree with the changes and think it’s a step in the right direction to combat fraud and money laundering, while other users hesitate to share their personal details and don’t want to risk their information being leaked in a data breach.
Apart from Telegram, other industries, websites, and apps have varying KYC requirements. For example, many businesses in the financial industry follow KYC requirements and ask for customers’ names, phone numbers, and birthdates. These measures are put in place within the financial sector in an effort to stop money laundering and fight the funding of terrorism. The online gambling sector is another example, including some establishments that ask for KYC details before players can wager and others that bypass this step. Casino expert and author Kane Pepi shares that no-KYC casinos, also known as no verification casinos, don’t require an ID from players to wager. When comparing the above examples, it’s clear that KYC requirements can vary from industry to industry and from business to business. However, in the case of Telegram and its mini-app wallet, the company has decided to now start implementing stricter KYC requirements for its users.
Telegram’s wallet is getting stricter in all areas, except for withdrawals. In an official announcement, the popular messaging app said that the KYC rules would apply to “all functions, except for withdrawals”.
The KYC regulations that Telegram is implementing also include a tiered level system. The “basic” level asks users to provide their information, but no formal documentation. At the “basic” level users can transfer wallet funds of up to $3,780 per day. If a user needs to transfer more than that amount, they can opt for the “extended” version of the wallet. This version will ask users for a national ID card and a residential address.
Because Telegram is switching wallet service providers, all user data and information will be transferred over to the new provider, WOT Global Solutions, starting in late May 2024. WOT Global Solutions will receive not only user data but also user transaction history.
Some users were upset with this news and did not agree for their information to be shared with the new service provider. Any Telegram wallet users in disagreement were asked to delete their wallet accounts on or before May 20th so that their information would not be shared.
KYC is a complex issue, and different industries have varying requirements. While financial institutions, like banks, are known to implement strict KYC rules, anonymous casinos offer a way for players to wager online and completely bypass KYC checks. While Telegram was previously more lenient on their KYC requirements, it’s clear they are starting to crack down, and their users have different opinions on this change.
