Why Wallet in Telegram Suspended Its Services in UK?

Why Wallet in Telegram Suspended Its Services in UK?

Pavel Durov’s social media platform is the new center of controversy, where today, a wallet built in Telegram has restricted its service for UK users. This social media platform is one of the biggest platforms, catering to millions of users looking for privacy and security. However, that is not all, as Telegram has also gained immense popularity among the crypto enthusiast. And with this popularity, many mini-apps, including crypto wallets, are built on the platform. One such wallet, Wallet in Telegram, has decided to go for much-awaited rebranding, which has been planned since September 2023.

Interestingly, the wallet is named Wallet in Telegram, but it has no connection to Telegram other than using Telegram’s Mini App platform like hundreds of other mini-apps.

Wallet in Telegram Puts Hold On Services For UK Users

In the last few months, the UK’s regulations have gotten stricter, causing the need for significant changes in many services. In an attempt to do the same, the Wallet in Telegram has informed its UK users of a temporary hold.

The wallet team has revealed that after the internal decisions and restructuring plans, the wallet is applying for UK registration as the FCA CryptoAsset provider. More importantly, this restructuring or rebranding is a part of their broader plans, implemented after the result of the merger with The Open Platform in September 2023.

The official announcement did not reveal the exact date of restarting these services. However, the Wallet in Telegram team has promised to provide constant updates. More importantly, they have permitted the users to transfer their holdings to other crypto wallets without any charges during this period. Though it is troublesome for UK users, the Wallet team has planned to return to the UK market after registration.

Telegram Has Introduced Interesting Changes in a Few Policies

Like many other countries, the UK has also stricken its regulations around the crypto industry. After facing increasing money laundering and financial crimes, the FCA has introduced strict laws around Fintech platforms. With similar regulatory approaches, the French authorities arrested Pavel Durov, the Telegram CEO for his failure to restrict the spread of illegal content on the platform. Since then, a few changes have been noticed in the Telegram policies, which were unexpected for many.

The changes began with the updated answer on the FAQ, which stated, “There’s illegal content on Telegram. How do I take it down?” Earlier, Telegram called it a matter of the channel’s privacy and off-limits. However, the new answer contained detailed steps for reporting such content. Though the team was already working on removing the illicit content, the process has sped up since then. Additionally, Pavel recently disclosed the plans to share the bad actors’ IP addresses and phone numbers with regulators. It is a clear indication that the platform is stricting its policies for bad actors.

In one of the messages, Pavel said,

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 for almost a billion users.

However, many platform users were disappointed with these changes, fearing what’s coming next. Some even claimed that Telegram is the new Facebook.

Final Thoughts

Telegram has gained popularity among the crypto community for privacy and the launch of popular tap-to-earn games like Hamster Kombat, which just began the Interlude season. However, the same characteristics have highlighted this social media platform in front of government officials, causing regulatory disagreements.  In an unrelated share of events, Wallet in Telegram has temporarily restricted its services for UK users. It is to complete its restructuring plans and gain the Crypto asset provider license.

The post Why Wallet in Telegram Suspended Its Services in UK? appeared first on CoinGape.


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