Ledger Recovery introduces a new recovery feature that allows the developer company to transfer and store backups of the original phrases.
Hardware cryptocurrency wallet maker Ledger notified users about the launch of a new service to restore access to Ledger Nano X devices.
Device owners are advised to upgrade to the latest version of Ledger Live 2.2.1 TheOS.
According to the developer, Ledger Recovery is an ID-based key recovery service that provides a backup of a user’s passphrase to restore access to the device.
Using Ledger Recovery will allow the device to transmit encrypted fragments of the wallet owner’s sid-phrase.
A valid passport or national ID issued in the European Union, United Kingdom, Canada or the United States is required to sign up for the service.
Ledger Recover is now compatible with Ledger Nano X devices and is available on Android and iOS platforms running the latest version of Ledger Live.
The cryptocommunity met Ledger’s innovation with outrage.
“It seems completely insane for a hardware wallet provider to urge you to back up your cid phrase online, as well as provide your passport or ID,” commented a related Reddit thread.
Some Ledger Nano users agreed in comments that the launch of the Ledger Recover update is one of the legitimate steps to tighten current crypto regulations.
It shows Ledger’s efforts to adapt to the rules that the European law on regulation of cryptocurrencies (MiCA) introduces.
Users on Reddit worry that governments could require all legal providers of crypto services, whether they be marketplaces or cryptocurrency wallet developers, to require users to undergo a user identification process (KYC).
After updating the Ledger Live version, some users had problems with the Ledger Nano X device freezing.
It helps to get it back in working order by disassembling the device and disconnecting the battery for a short time.
Ledger wallet users were previously reported to have lost more than 1,150,000 XRP due to phishing scams that lured people to the fake site.