Amid regulatory uncertainty, Telegram will not initially integrate TON wallet into its messaging app

In a public notice, Telegram said that it does not expect to integrate the TON Wallet application into its encrypted messenger service when Telegram Open Network (TON) blockchain is launched. Instead, the company will offer the wallet on a stand-alone basis to compete with other potential GRAM wallets provided by third parties. But Telegram did not rule out integrating the TON Wallet down the line, that is, if the move “is permitted under applicable laws and governmental authorities.”

Why it matters:

• Some, including Spencer Noon, see the announcement as a gut-punch to GRAM investors. One of the primary reasons for investing in TON was the assumed opportunity to use Telegram, with its 200 million monthly user base, as a distribution channel.
• The notice comes within a week after a U.S. district judge ordered Telegram to explain why the company failed to disclose all of its ICO financials with the U.S. SEC. The SEC wants to determine Telegram’s role in the development of TON and GRAMs, which the government agency deems is relevant to the “efforts of others” part of the Howey Test.
• Telegram has a couple of upcoming court dates with the SEC. Telegram’s founder and CEO Pavel Durov, along with two other employees, will give testimony starting tomorrow in the SEC vs. Telegram case. The deposition will set the stage for when the two meet in court on Feb. 18.
  

Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.