Satoshi Test
Last updated
Last updated
What is a Satoshi test?
A Satoshi Test is a method to verify ownership of an address belonging to your self-hosted wallet. To verify the wallet ownership, a small amount (Satoshi) is sent from the withdrawal address to the virtual asset service provider (FinchTrade). If a wallet user is able to successfully do this, they control the wallet.
Why do you need to do it?
The Swiss Financial Market Supervisory Authority FINMA requires a customer to verify the wallet ownership prior to making a withdrawal to their wallet address.
How to perform a Satoshi test?
You send a small amount of cryptos (5-10 USD equivalent) to our wallet.
When do I need to make a satoshi test?
You need to perform a satoshi test before the first withdrawal of funds to this address. We recommend adding addresses and performing Satoshi tests right after your account is approved.
The wallet address verification process does not affect your trading account. You may trade crypto-to-crypto or fiat-to-crypto within your FinchTrade account as normal without completing the Satoshi test. When you want to withdraw crypto assets or deposit more crypto assets, you will need to complete the Satoshi test.
Please note that we are unable to withdraw funds to an address that did not pass the Satoshi test.
What if I do not do a satoshi test?
Deposits and withdrawals of fiat currencies are not included in this Proof-of-Ownership process. This process applies only to crypto asset transfers.
However, if you are mainly interested in the on-ramp solution, there is no need to do a satoshi test during the onboarding process as you will be only sending us fiat. Whenever there is a time to settle positions, we will do a satoshi test ourselves by sending you a small amount and asking you to provide proof or receipt.
What if I send cryptos from an unverified address?
Please note, if an incoming transaction is not originating from a verified wallet of the customer, proof of control must be provided immediately. In that particular case, you will be asked to provide a print screen of the external wallet showing your company’s name and the remitting address. We will not add funds to your account until the proof of ownership is completed.
