Telegram to Open Local Office in Kazakhstan to Enhance Regulatory Compliance

In a significant move to bolster its regulatory compliance, Telegram has announced plans to establish a local office in Kazakhstan. This decision, revealed by the Ministry of Digital Development, Innovations, and Aerospace Industry, aims to improve communication with local authorities and enhance the management of content on the platform. With a rapidly growing user base in the country, this step is seen as crucial for both Telegram and the Kazakh government.

Growing User Base in Kazakhstan

Telegram’s popularity in Kazakhstan has surged, with over 12.5 million users actively engaging with the app monthly. This figure represents more than half of the nation’s 20 million population, highlighting the platform’s significant reach. Since 2023, the user base has increased by 25%, indicating a strong demand for the messaging service.

• Key Statistics:
  • Monthly Users: 12.5 million
  • Population Coverage: Over 50% of Kazakhstan’s population
  • User Growth: 25% increase since 2023

The establishment of a local office aligns with broader discussions involving Kazakh officials and representatives from major U.S. tech companies, including Meta and Apple. These discussions have focused on critical issues such as data protection, fraud prevention, and the management of fake accounts on various platforms.

Enhancing Regulatory Compliance

Kazakhstan’s recent legislative changes require major internet platforms, including Telegram, WhatsApp, and TikTok, to appoint local representatives and set up offices within the country. This move is intended to ensure better compliance with local laws and regulations. Minister Zhaslan Madiyev emphasized that Telegram’s physical presence will enhance control and oversight of content on the platform.

• Minister Madiyev’s Statements:
  • The office will be an “important step to increase control” over content.
  • Cooperation with Telegram is vital for swiftly removing illegal content and blocking illicit channels.

This initiative comes at a time when Telegram faces increased scrutiny in various countries. In late August, French authorities indicted Telegram’s founder, Pavel Durov, for the platform’s alleged failure to prevent illegal activities. In response, Telegram has implemented measures to address these concerns, including sharing user information with authorities when necessary.

Global Cooperation and Safety Measures

Madiyev highlighted the importance of global cooperation in ensuring the safety of Kazakh citizens in the digital space. The collaboration with Telegram aims to create a safer online environment by addressing issues related to illegal content and fraudulent activities.

In the third quarter of 2024, Meta reported blocking 1.2 billion fake accounts globally, largely through artificial intelligence. This highlights the ongoing battle against misinformation and fraudulent activities on social media platforms, a challenge that Telegram is also addressing.

Telegram has made significant updates to its search engine, focusing on removing problematic content and utilizing AI to detect and block illicit material. The establishment of a local office in Kazakhstan is a proactive step in this direction, marking one of the first global efforts by Telegram to ensure compliance with local regulations.

Financial Landscape and Digital Assets

As of the end of 2023, Telegram held approximately $400 million in digital assets, according to its financial statements. The platform has seen a rise in premium users, increasing from around four million at the end of 2023 to over five million by mid-2024. Despite generating $342.5 million in revenue, Telegram reported an operating loss of $108 million for the year.

Notably, about 40% of Telegram’s revenue came from activities related to digital assets, including an integrated wallet and the sale of digital collectibles. This financial landscape underscores the importance of regulatory compliance as Telegram navigates the complexities of operating in various jurisdictions.