Telegram Wallet Suspends In-App Functionality for UK Residents

Telegram makes the news again; this time for temporarily suspending its in-app wallet function for users residing in the United Kingdom.

Analytics firm Wu Blockchain noted this move on Thursday.

The decision reportedly comes as the company seeks to comply with regulatory requirements set by the UK Financial Conduct Authority (FCA). On the upside, the messaging app will allow users to transfer funds to external wallets for free during this period.

Telegram Wallet will suspend the in-app wallet function for UK residents until it registers with the UK Financial Conduct Authority as a crypto asset provider and obtains relevant licenses. Users can transfer funds to external wallets for free during this period.…
— Wu Blockchain (@WuBlockchain) September 26, 2024

Telegram Wallet in the UK

Telegram Wallet is an integrated feature within the Telegram app. It allows users to manage cryptocurrencies such as Bitcoin (BTC), Tether (USDT), and Toncoin (TON). It offers a user-friendly interface for sending and receiving digital currencies directly through Telegram chats. Since the wallet is embedded in the app, no additional downloads are required.

The suspension of the in-app wallet function is set to take effect immediately. Telegram has informed its UK users that they will not be able to use the wallet feature. This is until the company successfully registers with the FCA as a crypto asset provider and obtains the necessary licenses.

Additionally, the app announced major updates to its security and privacy policies, which will now include sharing users’ IP addresses and phone numbers with authorities upon receiving valid legal requests, particularly in cases involving criminal activity that violates Telegram’s Terms of Service. This move has raised concerns among privacy advocates and users alike, The Shib Daily reported earlier.

Global Challenges: Privacy Concerns, Government Pressure, and Rising Restrictions

The recent announcement follows the arrest of Telegram’s founder and CEO, Pavel Durov, in France, prompting speculation about whether external pressures influenced the decision. Telegram reassured users by stating that any data-sharing instances will be detailed in a quarterly transparency report, available at https://t.me/transparency.

Apart from this, the app faced restrictions in several countries due to concerns over its encryption and the platform’s use by criminal groups and activists. Governments in countries like Ukraine, Iran, and China have attempted to block or limit access to the app, citing its refusal to comply with data requests and its role in facilitating protests or illegal activities.

Other countries like Indonesia and Brazil have also imposed restrictions or threatened bans on Telegram. These actions are often due to concerns over the platform’s end-to-end encryption, which prevents authorities from accessing communications related to criminal activities, terrorism, or misinformation.

In some cases, many governments pressured to remove specific channels or content linked to extremist groups or illegal activities. While the platform has complied with certain requests, it continues to walk a fine line between ensuring user privacy and adhering to government demands, leading to ongoing tensions with various governments.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 88