UK Telegram users face temporary wallet lock due to FCA restructuring

Telegram users in the UK will temporarily lose access to the in-app wallet feature, according to a statement from the platform’s third-party wallet provider.

The suspension comes as the wallet provider restructures and seeks registration as a crypto asset service provider under the Financial Conduct Authority (FCA).

This move is part of an effort to comply with UK financial regulations, and wallet services will remain unavailable until the required licenses are secured.

While UK users cannot use the wallet feature during this period, they will still be able to withdraw funds to external wallets without fees.

The wallet provider has assured users that regular updates will be provided.

Importantly, the wallet service is not an official product of Telegram, but a separate entity operating under different regulatory decisions. This distinction distances it from recent changes in Telegram’s policies.

Telegram, under founder Pavel Durov, has introduced several platform adjustments in recent months, including a controversial policy to share user data with law enforcement in cases of legitimate legal requests.

The policy, which includes sharing phone numbers and IP addresses, has drawn criticism from privacy advocates concerned about government misuse.

In response, Durov defended the move, emphasizing the need to safeguard Telegram’s massive user base from criminal exploitation.

He noted that Telegram is meant to be a platform for communication and news discovery, not a hub for illicit activities.

Additionally, the platform has removed personal geolocation features and discontinued its blogging tool “Telegraph,” citing abuse by a small group of malicious actors.

Durov reiterated that only a tiny fraction of users were misusing the tools, but the risk they posed to the broader community warranted these changes.