Telegram’s New Data Sharing Policy Raises Concerns for Crypto Users Over Privacy

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Telegram’s compliance with legal data requests has raised concerns among users, especially in the crypto community, where privacy is a key priority.

Telegram has updated its privacy policy, announcing that it will now comply with legal requests for user data in cases involving criminal activity. The platform, which has long been a go-to for privacy-focused individuals and crypto traders, will share user IP addresses and phone numbers when a valid court order confirms a user is involved in criminal activity. This policy shift has raised concerns among Telegram’s massive crypto user base.

On September 23, 2024, Telegram’s CEO Pavel Durov revealed the platform’s new policy. The platform will share user data with authorities in cases involving serious criminal activity, as determined by a legal process. Previously, Telegram only shared data in cases of terrorism. The update represents a clear shift from Telegram’s previous stance on data privacy, which was a key feature that drew millions of users, particularly within the crypto community.

The company emphasized that this policy applies only to users suspected of criminal activity and only when a valid legal request is made. Data sharing will also be reported quarterly through a dedicated Telegram channel to maintain transparency.

Telegram’s decision to comply with legal requests for user data has created anxiety among its user base, particularly within the cryptocurrency space, where privacy is a primary concern.

The platform has been a hub for crypto traders and decentralized projects due to its strong privacy features. Now, with the updated terms allowing authorities to access IP addresses and phone numbers for criminal investigations, many in the crypto space worry this could impact their activities. Although Telegram insists the policy targets only illegal activities, the growing scrutiny leaves some users uneasy about the platform’s long-term privacy commitment.

Crypto communities on Telegram may face increased risks, especially considering the decentralized nature of many crypto projects. With heightened monitoring and the potential for data sharing, users are encouraged to exercise more caution, particularly when engaging in crypto transactions and discussions on the platform.

The backlash in the crypto space highlights the importance of privacy in financial dealings, especially for traders who prioritize anonymity.

In August 2024, Durov was arrested in France, accused of complicity in facilitating illegal activities through the platform, including drug trafficking and fraud. While Durov was released on a €5 million bail, the investigation is ongoing. These legal pressures likely played a role in Telegram’s updated privacy stance.

The policy has reignited concerns about privacy and freedom of speech, with some users feeling that Telegram may no longer be a safe haven for open discussions, especially in countries with strict censorship policies.

Telegram has a history of clashes with governments over its privacy policies. In 2015, China banned the app due to its role in facilitating communication between activists. Russia also banned Telegram from 2018 to 2020 after the platform refused to share encryption keys with security services, though this ban was later lifted.

In 2023, Brazil and Spain imposed temporary bans on Telegram for non-compliance with local laws. Most recently, Ukraine’s cybersecurity agency banned the app on government devices due to security concerns.