Telegram’s popular third-party crypto wallet bot, Wallet, is undergoing significant changes that will impact user privacy and transaction limits. The bot will now enforce stricter Know Your Customer (KYC) verification steps and switch to a new service provider, WOT Global Solution.
Starting from June 3, 2024, Wallet users will be required to provide their name, phone number, and date of birth to access all features, except for withdrawals. Previously, users could use Wallet’s services without any identity verification. The updated KYC process introduces three tiers of verification. The “basic” level only requires the user to provide their name, phone number, and date of birth. This level will impose a daily limit of approximately 3,500 euros ($3,780) on incoming crypto transactions and a monthly limit of 35,000 euros ($37,800). To access higher limits, users must progress to the “extended” tier by submitting national identification documents. This level allows daily transactions of up to 100,000 euros ($108,000) and monthly transactions of up to 1 million euros ($1.08 million). For even higher limits, the “advanced” tier requires users to provide a residential address.
It’s important to note that these changes do not apply to Wallet’s TON Space sub-wallet, which allows users to perform decentralized swaps and transfer non-fungible tokens (NFTs) without any custodial limitations.
In addition to the KYC overhaul, Telegram’s Wallet is also changing service providers. Starting from May 30, 2024, WOT Global Solution will take over as the new service provider for Wallet. The new provider will collect all user data from the previous operator. Users who do not want their data to be shared with WOT Global Solution had until May 20th to delete their Wallet accounts. Telegram stated that this transition is part of their ongoing efforts to improve the quality of their services.
The ability of Wallet to impose such strict limits and KYC requirements is due to its custodial nature. As a custodial cryptocurrency wallet, Wallet holds and manages users’ assets on their behalf. Users do not directly own or control their assets. This is different from self-custodial wallets like MetaMask, Trezor, and Ledger, which give users full control over their private keys and funds without the need for KYC or third-party oversight. However, according to Halil Mirakhmed, Wallet’s COO, the custodial approach was adopted to simplify the onboarding process for new users.
