Telegram Paused Crypto Wallet Services in The UK

Telegram has paused crypto wallet services for UK users to comply with financial regulations set by the Financial Conduct Authority (FCA). The FCA requires platforms offering crypto services to obtain a special license known as the “AML/CTF Cryptoasset Registration.” This license helps prevent money laundering and terrorism financing. Until Telegram secures this license, UK users can still withdraw their funds without any fees.

The FCA’s license is necessary for all crypto businesses in the UK. Its purpose is to ensure these companies follow the UK’s anti-money laundering and counter-terrorism financing laws. These regulations are meant to stop illegal activities related to cryptocurrencies.

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Telegram has faced criticism in the past for not enforcing strict regulations. To improve its image and comply with UK rules, the platform is tightening its policies. It’s also working on monitoring suspicious user profiles, channels, and bots more closely.

Telegram’s crypto wallets are widely used in blockchain-based games, where users earn rewards. For example, the game Hamster Kombat allowed users to earn coins through Telegram’s wallet feature. However, due to stricter UK regulations, Telegram is restructuring its crypto services to meet the required standards. The wallet services will resume once the platform secures the necessary license, but there is no specific timeline yet.

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In recent years, Telegram has been associated with illegal activities. The company’s founder, Pavel Durov, was even detained by French authorities for not taking enough action to prevent such activities. Western regulators have pressured Telegram to make changes, and obtaining the FCA license is part of the company’s efforts to comply with global standards.

Beforehand, Telegram’s features, such as bots, mini-apps, and channels, have been exploited by scammers. To address these concerns, Telegram is now working on enhancing security and committed to creating a safe environment for its users by removing the “Businesses Nearby” feature, which had been exploited by illegal operators.