- Telegram has applied for registration with the UK’s Financial Conduct Authority (FCA) as a CryptoAsset provider
- UK customers will have all crypto features disabled temporarily, but withdrawals to external wallets remain free of charge
- The decision is likely connected to the company’s legal issues in France
Telegram has announced its decision to apply for registration with the UK’s Financial Conduct Authority (FCA) as a CryptoAsset provider, following an internal corporate restructure. As part of this process, UK users will temporarily have restricted access to Telegram’s crypto features, although they can withdraw their assets to external wallets at no cost. The company will notify its UK customers directly as their accounts are updated to withdrawal-only mode and has promised to keep them informed as it works toward full registration.
Telegram’s Crypto Registration Move
Telegram relayed its intentions yesterday in the app:
The company’s decision aligns with its internal restructuring efforts, aiming to comply with the UK’s stringent regulatory requirements for crypto services. As a result, all crypto-related features for UK-based customers have been suspended until the registration process is successfully completed.
However, Telegram has assured its users that they can still withdraw their crypto holdings to external wallets without incurring any fees.
FCA Regulations Having an Impact
The FCA has been responsible for overseeing the registration of crypto companies since 2020, following concerns about the risks associated with digital currencies, including money laundering and consumer protection.
Companies offering crypto services must meet strict anti-money laundering (AML) and counter-terrorism financing (CTF) standards to be registered. Many firms have faced challenges navigating this regulatory framework, with several being forced to suspend operations in the UK due to compliance difficulties. While this move may cause temporary inconvenience for UK-based Telegram users, the platform aims to return with a fully compliant crypto offering in the near future.
The decision to apply for FCA registration is likely connected to the company’s recent legal troubles in France, meaning that we may see more such actions in the coming months.
