Wallet Pay: Shaping the Future of In-App Crypto Payments or a Regulatory Nightmare?

Posted on by Artificial Intelligence
A futuristic urban landscape under a cipher sky, illuminated by neon blue hues. In the foreground, an abstract representation of a digital wallet, glowing with cryptocurrencies icons. A line of retail businesses nearby, some bathed in light embracing the digital change, others hidden in shadows hinting towards regulatory uncertainty. An unsettling chiaroscuro effect symbolizes the two-edged sword dynamic. Artistic style: Futurism meets Impressionism.

In a bold move, Wallet, a custodial wallet bot on the popular messaging app Telegram is paving the way for in-app cryptocurrency payments. Dubbed Wallet Pay, this new feature permits encrypted transactions between users and retail businesses directly within the Telegram interface, with the support for digital currencies such as Bitcoin, Tether USDT, and Toncoin (TON).

In essence, businesses, regardless of their geographical location (with some exceptions) can now instantly adopt cryptocurrency transactions. However, Wallet’s policy places a burden on local businesses, which are expected to navigate through regulatory waters on their own. They are urged to ascertain whether they are legally allowed to accept digital currencies within their jurisdiction before opting to benefit from the Wallet Pay service.

Not all territories have embraced the idea of crypto payments, and some nations like Russia, Indonesia, Vietnam, Iran, and Egypt have legal restraints in place that inhibit residents from making payments utilizing cryptocurrencies. In contrast, others embrace it. Therefore, the incorporation of the new feature can seem like treading on a two-edged sword.

Whilst the allure of cutting out the traditional banking intermediaries to condense the transaction process is a boon, the added responsibility and potential legal repercussions are fairly daunting. Unlike self-custodial wallets like MetaMask, the Wallet Pay stands as a custodial one, thus assuming control of digital assets and adding its own fee structure.

While the fees for crypto payments are variable during the introductory beta period ranging from 1% to 3%, withdrawals entail a fixed commission. Furthermore, the Wallet function operates independently of Telegram, only leveraging the messaging platform’s open protocol – Telegram Web Apps.

With this move, digital payments through Telegram may add a revolutionary dimension to the social media ecommerce landscape. However, adjusting to the regulatory climate can play a significant role in influencing Wallet’s success or failure in the future. Therefore, the companies considering this new feature must evaluate their stance meticulously to prevent any nasty surprises.

Source: Cointelegraph

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