Satoshi Test
Last updated
Last updated
A Satoshi Test (also referred to as a satoshi-test) is a method used to verify the ownership of a wallet address in your self-hosted wallet. It involves sending a small amount of cryptocurrency, often called "test coins" or "Satoshis" (the smallest unit of Bitcoin), from a withdrawal address to a virtual asset service provider (like FinchTrade). This proves that the wallet owner has control over the wallet.
If you’re wondering "what is Satoshi Test?", it’s a compliance measure that ensures the safe and verified transfer of digital assets.
The Swiss Financial Market Supervisory Authority (FINMA) requires customers to verify wallet ownership before withdrawing funds. This verification process ensures compliance with global anti-money laundering (AML) regulations and builds trust between users and service providers.
To conduct a Satoshi Test Bitcoin verification:
Add your wallet address in the FinchTrade cabinet.
Send a small amount of cryptocurrency, equivalent to $5–$10 USD, to our wallet. This is referred to as the Satoshi Practice Amount or a test coin a Satoshi transaction.
You must perform the Satoshi Test before the first withdrawal of funds to a new address. Completing this step promptly after account approval is recommended to avoid delays.
A Satoshi Withdrawal Address verification is necessary before withdrawing funds to an untested address. However, this process does not impact your ability to trade within your FinchTrade account. The Satoshi Procedure only applies when withdrawing crypto assets or depositing additional funds.
For users focused on fiat deposits, the satoshi-test is not required during onboarding. In cases where positions need settlement, FinchTrade may initiate a Satoshi Quiz by sending a small amount to your wallet and asking for proof or receipt.
Deposits and withdrawals of fiat currencies are exempt from this Proof-of-Ownership process, but crypto transfers require compliance. If you send cryptocurrency from an unverified address:
Proof of control must be provided immediately.
You must submit a screenshot of the external wallet displaying your company name and the remitting address. This step is called the Satoshi Verify Pepper and ensures proper verification.
Funds will not be credited to your account until the verification is complete.
If your transaction involves operations that require Satoshi verification, completing the test is mandatory to avoid delays.
If a transaction originates from a Wallet of Satoshi Withdrawal, ensure the wallet is verified or provide proof of control.
Transactions from unverified addresses are delayed until ownership is confirmed.
The Satoshi Method mitigates risks associated with unauthorized wallet usage and ensures compliance with global standards like those outlined by FINMA. FinchTrade remains committed to secure, transparent, and compliant operations through the satoshi-test process.
By following this Satoshi Check, you can confidently use FinchTrade’s services while ensuring compliance and operational transparency.
What is a Satoshi Test Meaning? It’s the process of verifying wallet ownership by sending a small test transaction.
What is a Satoshi Wallet Address? It’s the wallet address used to send or receive the test transaction.
What is a Satoshi Practice Amount? This refers to the small transaction amount (typically $5–$10 USD) sent for wallet verification.
