LUCKNOW (CoinChapter.com)—Wallet, a popular third-party crypto wallet bot, is undergoing major changes. The bot will soon impose stricter Know Your Customer (KYC) verification steps and switch to a new service provider, which will impact user privacy and transaction limits.
Source: XStarting June 3, 2024, Wallet users must disclose their name, phone number, and date of birth to access all features except withdrawals. Previous lax KYC norms allowed users to enjoy Wallet’s services without any identity verification.
Three Tiers of Verification Upon Accessing Telegram Wallet
The updated KYC process introduces three distinct tiers, each with its own set of limits and requirements. The “basic” level only mandates providing a name, phone number, and date of birth. This level will cap daily incoming crypto transactions at around 3,500 euros ($3,780) and monthly transactions at 35,000 euros ($37,800).
To unlock higher limits, users must progress to the “extended” tier by submitting national identification documents. This level permits daily transactions up to 100,000 euros ($108,000) and monthly transactions up to 1 million euros ($1.08 million). For those requiring even higher limits, the “advanced” tier necessitates providing a residential address.
It’s worth noting 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 custodial limitations.
User’s Data To Be Transferred To The New Service Provider
In addition to the KYC overhaul, Telegram’s Wallet is also changing hands. Effective May 30, 2024, WOT Global Solution will take over as the service provider for Wallet. The new service provider will collect all user data from the previous operator.
Users who wish to prevent their data from being shared with WOT Global Solution had until May 20th to delete their Wallet accounts. The company stated that this transition is part of its “ongoing efforts to provide better quality services.”
Wallet’s ability to impose such stringent limits and KYC requirements comes from its custodial nature. Wallet operates as a custodial cryptocurrency wallet, meaning users do not directly own or control their assets. Instead, they entrust the management and storage of their cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), and Toncoin (TON), to a third-party entity – in this case, Wallet itself.
This custodial model contrasts with self-custodial wallets like MetaMask, Trezor, and Ledger, which grant users full control over their private keys and funds without the need for KYC or third-party oversight. However, according to the company’s COO, Halil Mirakhmed, Wallet followed a custodial approach just to simplify the onboarding process for new users.
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