Telegram Crypto Wallet suspends in-app wallet function for UK residents, waiting for registration with FCA body

Now the Telegram crypto wallet services will remain suspended for all UK-based residents, as the Wallet team is waiting for regulatory approval from the UK’s financial regulatory body.

The United Kingdom (UK) is a significant jurisdiction for the crypto sector. In this jurisdiction, the Financial Conduct Authority (FCA) is the regulatory body responsible for regulating the crypto sector through new rules dedicated to digital assets and some traditional financial rules.

On 25 Sep 2024, the Telegram Wallet announced that they had decided to suspend the in-app wallet function for UK-based Telegram users. This suspension will remain in effect until Wallet registers with the UK Financial Conduct Authority (FCA) as a digital assets provider and obtains the additional licences required for crypto-linked services. 

In the meantime, Telegram Wallet users can transfer crypto funds to external wallets for free.

It is worth noting that Wallet is a completely independent service from the Telegram platform, so Wallet will be required to file for the crypto licence, without using the name of Telegram. 

Some people have speculated that Wallet decided to register with the FCA body due to the arrest of Telegram founder Pavel Durov last month. People need to understand that the latest decision by the Wallet team is totally independent of Pavel’s arrest.

It will be interesting to see how long it will take for Wallet to secure regulatory approval from the FCA, as many crypto companies are already in the queue seeking registration to enter the UK crypto market. However, the majority of them are failing because the FCA is highly strict against crypto companies, making it very tough for companies to meet all the measures and criteria required to secure approval.

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