The Wallet in Telegram app, a popular third-party service, will face a temporary suspension for users in the United Kingdom due to recent restructuring efforts that have integrated the service into the Open Platform. According to a statement released on September 25, the app will remain unavailable until it secures registration as a corporate asset provider under the current regulations of the Financial Conduct Authority (FCA).
Transition to Compliance
The provider of Wallet in Telegram has decided to register as a crypto asset provider, adhering to FCA regulations. This move necessitates disabling the in-app wallet features for UK residents until the necessary regulatory licenses are obtained. During this interim period, UK users will be able to transfer funds to external wallets without incurring any fees, and they will receive ongoing updates about their accounts.
It is important to note that Wallet in Telegram operates independently of Telegram. The decision to apply for FCA registration is driven by a separate organizational strategy and is not related to recent policy changes or the legal case involving Pavel Durov, Telegram’s founder.
Telegram’s Recent Policy Changes and Controversies
Following Pavel Durov’s arrest, Telegram has implemented significant policy changes, including a new policy to cooperate with law enforcement. Under this policy, Telegram will disclose user data, such as telephone numbers and IP addresses, in response to valid legal requests. This move has sparked concerns among privacy advocates and anti-censorship groups, fearing potential misuse by state authorities.
Durov’s Defense:
Pavel Durov defended the policy adjustments, arguing that they are designed to deter criminal activities on the platform and protect its nearly one billion users. He stated:
“These measures should discourage criminals. Telegram Search is meant for finding friends and discovering news, not for promoting illegal goods. We won’t let bad actors jeopardize the integrity of our platform.”
Changes by Telegram
In September 2024, Durov announced further modifications to Telegram’s features:
- Geolocation Feature: The personal geolocation feature in the app will be disabled and replaced with a “Businesses Nearby” option, aimed at enhancing user privacy and safety.
- Telegraph Blogging Tool: Due to its misuse by a minority to spread illicit material, support for Telegram’s “Telegraph” blogging tool has been discontinued. Durov emphasized that while the majority of users utilized the feature responsibly, the risks posed by a small fraction using it for harmful purposes were disproportionately high.
The restructuring of Wallet in Telegram into the Open Platform and its pursuit of FCA compliance represent significant steps towards integrating crypto services into regulated financial systems. At the same time, Telegram’s policy shifts reflect ongoing challenges in balancing user privacy with regulatory and safety concerns. These developments underscore the complex landscape of digital communication and finance, where technology often intersects with legal and ethical considerations.
