Encrypted messaging service Telegram has published the terms of service for its native cryptocurrency wallet Grams Wallet.
In the Oct. 8 publication, Telegram said the conditions apply whether as a standalone application or as incorporated into the Telegram Messenger application. Here are five key takeaways:
1. Taxes, regulation
In the statement, Telegram emphasized that the Grams Wallet should not be used in jurisdictions where its services are prohibited by any applicable law, regulation or rule, including embargoes, sanctioned countries and sanctioned individuals. Telegram also stressed that its customers are responsible for determining what taxes apply to use of Gram services. The firm wrote:
“We are not responsible for determining whether taxes apply to any transactions you make using the Services or for collecting, reporting, withholding or remitting any taxes arising from any virtual currency transactions.”
According to the terms, Grams Wallet has no control over the Telegram Open Network (TON) blockchain in terms of ensuring that any transaction details submitted via the services will be validated and confirmed. The firm noted that transactions may require a fee of an unspecified amount, adding that Telegram also has no control over the range or type of such fees.
The firm explained:
“The transactions you submit via the Services may not be completed, or may be substantially delayed by the TON Blockchain. We have no control over the TON Blockchain and do not have the ability to facilitate any cancellation or modification requests to transactions you have submitted.”
3. Private keys
Grams Wallet will not access or store public or private keys, backup phrases or passwords or other identification data about its clients. The company stressed that its customers will be solely responsible for managing and maintaining the security of their credentials. In case the credentials are lost, the company will not have the ability to recover credentials or assist in resetting them, meaning clients may not be able to access their Grams.
In their terms, Grams Wallet stated that the firm reserves the right to close, terminate or disable any or all Gram services, accounts, or access to the services “at any time for any reason.”
5. Terms of service modifications
Additionally, Telegram reserves the right to modify their terms of service at any time and in their sole discretion. The firm added that revised terms will be posted on the page, adding that its customers should periodically review the terms when using the services as changes come into effect immediately after posting.
The rules for using Grams Wallet come just weeks before the much-anticipated launch of the TON blockchain, scheduled for late October, as officially announced by Telegram last week. Yesterday, the digital asset custodian of software firm Anchor Labs said that it had become the first entity qualified to support institutional custody for Gram token.