> For the complete documentation index, see [llms.txt](https://help.finchtrade.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.finchtrade.com/how-it-works/satoshi-test.md).
# Satoshi Test
### What is a Satoshi Test?
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.
### Why Do You Need a Satoshi Test?
The [Swiss Financial Market Supervisory Authority (FINMA)](https://www.finma.ch/en/) 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.
### How to Perform a Satoshi Test
To conduct a Satoshi Test Bitcoin verification:
1. Add your wallet address in the FinchTrade cabinet.
2. 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.
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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.
### When is a Satoshi Test Required?
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.
### What Happens If I Don’t Perform a Satoshi Test?
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:
1. Proof of control must be provided immediately.
2. 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.
3. 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.
### Additional Considerations
* 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.
### Why is Satoshi Testing Important?
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 should I do if my wallet was rejected during screening?
If a wallet does not pass our internal AML screening, it cannot be used for transactions; in line with our risk & compliance policy we do not disclose scoring details or the name of our screening provider - please use an alternative wallet to proceed.
#### **Deposit vs withdrawal addresses — do I add them separately?**
No. Deposit and withdrawal addresses are managed in the same place — the **Addresses** section of app.finchtrade.com. There is no separate section for each purpose.
If you are adding an address you intend to withdraw to, please let your account manager know so that it can be whitelisted for outgoing transfers.
**Default address.** Any address in your address book can be marked as default. The default withdrawal address is the one the system uses automatically when it needs to determine where to send funds. You can set it in two ways: with the toggle in the address details window, or through the menu in the address row in the table.
All changes to addresses and default settings are confirmed with 2FA
#### **Can I remove or deactivate an address I no longer use?**
Yes. Old addresses can be deactivated in your account once the withdrawal to the new address has completed successfully — we recommend keeping the previous address active until then. Please note that **deactivation is not instantly reversible**: if you deactivate an address and then add the same address again, it will not become active automatically — ask your account manager to restore it.
### Common Questions
* **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.