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Update May 30, 7:40 pm UTC: The article was updated to mention that before the latest KYC change,&nbsp;some Telegram Wallet users did not have to provide any personal information to use the default version of the wallet, while some users were required to provide certain data.
Wallet, a third-party cryptocurrency wallet mini app on Telegram messenger, is undergoing significant changes, such as imposing stricter <a href="https://cointelegraph.com/learn/what-is-kyc-and-why-do-crypto-exchanges-require-it">Know Your Customer</a> (KYC) rules and changing its service provider.
On May 29, Telegram's Wallet informed users about several updates to its KYC system, requiring additional personal information to conduct certain transactions.
According to an update seen by Cointelegraph, Wallet 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.
“Starting June 3, all features except withdrawals will require updated account details,” Wallet’s announcement notes.
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 Source: Cointelegraph
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Wallet’s new KYC system introduces massive changes to the user experience on Telegram’s Wallet. Before the update, some Telegram Wallet users did not have to provide any personal information to use the default version of the wallet, while some users were required to provide certain data, a spokesperson for Wallet told Cointelegraph.
<h2 data-ct-non-breakable="true" id="three-tiers-of-wallet-s-new-kyc-system">Three tiers of Wallet's new KYC system</h2>
With the change, users will have to pass at least some information to get the “basic” identification level, which limits incoming crypto transactions to 3,500 euros ($3,780) per day and 35,000 euros ($37,800) per month. This level of identification does not require any documentation.
“These limits are approximate and depend on local exchange rates,” Wallet’s KYC notice says, adding that the limits may vary in different countries.
The next tier, the “extended” version, asks for a user’s national identification to unlock transactions up to 100,000 euros ($108,000) daily and 1 million euros ($1.08 million) monthly. 
Users who want a higher limit need to provide their residential address to unlock the “advanced” version, which will remove an upper limit on the sum of funds that can be transferred.
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 Three tiers of Telegram’s Wallet updated KYC system. Source: Cointelegraph
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Significant limits are also imposed on card purchases and peer-to-peer purchases. The changes do not apply to <a href="https://cointelegraph.com/news/wallet-crypto-bot-rollout-telegram">TON Space</a>, Wallet’s self-custody sub-wallet, which allows users to perform decentralized swaps and transfer nonfungible tokens.
<h2 data-ct-non-breakable="true" id="telegram-s-wallet-is-now-serviced-by-another-company">Telegram's Wallet is now serviced by another company</h2>
In addition to the notice, Telegram’s Wallet&nbsp;<a href="https://wallet.tg/updates_notice.pdf" target="_blank" rel="noopener nofollow">announced</a> that its services will be provided by a different company. Starting May 30, 2024, Wallet services will be provided by WOT Global Solution, a subsidiary of The Open Platform (TOP), formerly First Stage Labs. In September 2023, Wallet merged with&nbsp;TOP to jointly work on Web3 applications and development.&nbsp;
Following the change, all user data will be transferred to WOT Global Solution. Collected data includes name, address, phone number, transaction data and any other data that Wallet may have on its users, the announcement notes.
"This data will be stored securely, and will not be used for any action other than the use of Wallet," a spokesperson for Wallet told Cointelegraph.
In order to prevent data transfer to WOT Global, users should have deleted their Wallet accounts by May 20.&nbsp;“This change is part of our ongoing efforts to provide better quality services to you,” Wallet said.
Related: <a href="https://cointelegraph.com/news/coinbase-wallet-crypto-transfer-links-social-media-messaging">Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram</a>
Telegram’s Wallet is a third-party Telegram mini-app that allows users to buy cryptocurrencies like Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>), Tether (<a href="https://cointelegraph.com/tether-price-index">USDT</a>), and Toncoin (TON), a coin originally backed by Telegram.
<h2 data-ct-non-breakable="true" id="why-telegram-s-wallet-is-able-to-limit-crypto-transactions">Why Telegram's Wallet is able to limit crypto transactions</h2>
By design, Telegram’s Wallet operates as a custodial wallet, meaning its users do not own their assets directly but rather entrust holding their crypto to a third party. 
In contrast, self-custodial crypto wallets like MetaMask, Trezor or Ledger allow users to <a href="https://cointelegraph.com/news/noncustodial-bitcoin-wallets-unbannable-says-exec-behind-trezor-wallets">hold their crypto directly</a>&nbsp;without any limits or KYC.
Wallet chief operating officer Halil Mirakhmed told Cointelegraph in November 2023 that the firm <a href="https://cointelegraph.com/news/telegram-wallet-avoided-self-custody">preferred to make Wallet a custodial solution</a> to ease the onboarding of new users.
Magazine:<a href="https://cointelegraph.com/magazine/deposit-risk-crypto-exchanges-money/"> Deposit risk: What do crypto exchanges really do with your money?</a>

Wallet on Telegram enforces new KYC rules, switches provider

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