The Telegram Wallet, a popular third-party cryptocurrency wallet bot on the Telegram messenger, is undergoing significant updates, including the enforcement of stricter Know Your Customer (KYC) rules and a change in service provider.

In a recent announcement, Telegram's Wallet informed users about several changes to its KYC system, requiring additional personal information for certain transactions. Previously, users did not need to provide any personal information to use the default version of the wallet.

Effective June 3, users will be required to disclose their name, phone number, and date of birth to access all default features of the wallet, excluding withdrawals. This marks a significant shift in the user experience, as KYC was not mandatory before this update.

The new KYC system introduces three tiers of identification. The "basic" level, which requires minimal information, allows for transactions up to 3,500 euros per day and 35,000 euros per month. The "extended" version, which requires national identification, unlocks higher transaction limits of up to 100,000 euros daily and 1 million euros monthly. Users seeking even higher limits must provide their residential address to access the "advanced" version, removing the upper limit on transferred funds.

Furthermore, significant restrictions are imposed on card purchases and peer-to-peer transactions. However, these changes do not affect TON Space, Wallet's self-custody sub-wallet, enabling decentralized swaps and non-fungible token transfers.

Additionally, Telegram's Wallet announced a switch in service provider to WOT Global Solution, effective May 30, 2024. All user data will be transferred to WOT Global Solution, including personal details, transaction data, and any other relevant information. Users were given the option to delete their Wallet accounts by May 20 to prevent data transfer to the new provider.

These changes reflect Telegram Wallet's ongoing efforts to enhance service quality and compliance with regulatory standards. Operating as a custodial wallet, Telegram Wallet facilitates the buying of cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Toncoin (TON), ensuring a user-friendly onboarding experience.

While self-custodial wallets offer direct asset ownership without limits or KYC, Telegram Wallet's custodial approach aims to simplify user onboarding and usage, prioritizing accessibility and convenience.

Despite attempts to reach out for comments regarding these changes, Telegram's Wallet has not responded by the time of publication.