In a significant update, Telegram Wallet, a third-party cryptocurrency wallet bot on the popular messaging platform Telegram, has announced the enforcement of new Know Your Customer (KYC) rules and a change in its service provider. As of May 29, Telegram Wallet users will be required to provide additional personal information to conduct certain transactions, marking a significant shift in the user experience.

Prior to this update, Telegram Wallet users did not need to complete any KYC to use the wallet by default. However, with the new KYC system, users will have to disclose their name, phone number, and date of birth to use all of the wallet's default features, except for withdrawals. The new system introduces three tiers of identification, each with varying limits on incoming crypto transactions.

The "basic" identification level requires minimal information and limits transactions to 3,500 euros ($3,780) per day and 35,000 euros ($37,800) per month. The "extended" version requires national identification to unlock transactions up to 100,000 euros ($108,000) daily and 1 million euros ($1.08 million) monthly. The "advanced" version requires a residential address to remove the upper limit on transactions.

Additionally, significant limits are imposed on card purchases and peer-to-peer purchases. However, these changes do not apply to TON Space, Wallet's self-custody sub-wallet, which allows users to perform decentralized swaps and transfer nonfungible tokens.

In another significant development, Telegram's Wallet will now be serviced by a different company, WOT Global Solution, starting from May 30, 2024. All user data will be transferred to WOT Global Solution, including name, address, phone number, transaction data, and any other data that Wallet may have on its users. Users who wish to prevent data transfer must delete their Wallet accounts by May 20.

This change is part of Telegram's ongoing efforts to provide better quality services to its users. However, the new KYC rules and service provider change may raise concerns among users who value their privacy and autonomy in managing their cryptocurrencies. As a custodial wallet, Telegram's Wallet operates differently from self-custodial wallets like MetaMask, Trezor, or Ledger, which allow users to hold their crypto directly without any limits or KYC.