The Telegram Wallet app, which allows users to manage cryptocurrencies within the messaging platform, has suspended its operations for UK users. This decision comes as the app works to comply with new regulations introduced by the UK Financial Conduct Authority (FCA).
Telegram Wallet Suspends UK Services Amid FCA Registration Process
On 25 September, Telegram Wallet announced that its in-app wallet features would no longer be available to UK-based users until the service completes its registration with the FCA. The company is aiming to become a registered crypto asset provider and obtain the necessary licenses before restarting operations.
During the suspension period, users can still withdraw their assets to external wallets without incurring any fees. This ensures that users maintain control over their cryptocurrencies, even as the service undergoes changes to meet regulatory standards.
The pause in the wallet’s operations is also linked to its recent integration with The Open Network (TON). This transition has prompted a reorganisation of the wallet’s services, though the suspension in the UK is solely due to compliance issues. It is important to note that Telegram Wallet operates independently from the main Telegram app, and the decision is not connected to any actions taken by Telegram’s CEO, Pavel Durov.
Read more: Telegram user privacy crisis, Telegram founder will share user IP and phone numbers with authorities
Telegram Pauses UK Wallet Services to Meet FCA Compliance Amid Stricter Crypto Regulations
The UK has introduced stricter regulations for crypto firms, particularly concerning money laundering and other financial crimes. The FCA has made it clear that any firm offering crypto services in the country must meet high compliance standards. As a result, many companies are taking steps to ensure they meet these new legal requirements.
While the wallet’s suspension is temporary, Telegram continues to expand TON-related services, offering features like ad revenue sharing with channel operators.
Read more: Telegram Game Hamster Kombat Bans 2.3 Million Users Sparking Controversy and Confusion
Legal Issues and Telegram’s Response
This move follows legal challenges for Telegram. Recently, Durov faced legal issues in France related to allegations that Telegram had enabled the distribution of illicit content. In response, Telegram revised its policies to fully cooperate with law enforcement, ensuring compliance with valid legal requests for user data.
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