The enhanced solution now unifies four commonly accepted unhosted wallet ownership proof methods, supporting risk-based Travel Rule alignment across jurisdictions.
Sumsub has announced the addition of the automated Satoshi Test to its Unhosted Wallet Verification solution. The Satoshi Test, also known as microtransaction verification, is a secure and widely accepted method for proving ownership of unhosted wallets through a small, time-bound test transaction. This enhancement enables virtual asset service providers (VASPs) to confirm wallet ownership and detect and manage potential illicit activity associated with unverified wallets in a fast, reliable way, while supporting uninterrupted legitimate transfers.
By introducing the Satoshi Test, Sumsub now supports four ownership verification methods in its Unhosted Wallet Verification solution, completing coverage of all commonly accepted methods and embedding them directly into the transaction flow. The other options include Digital Signature, Self Declaration, and Screenshots. It allows companies to adapt to evolving regulatory expectations and apply verification methods that align with their risk‑based policies.
The development comes amid increased regulatory scrutiny of transactions involving unhosted wallets. The Financial Action Task Force (FATF) has warned that unhosted wallets and stablecoins can increase the risk of illicit activity, such as money laundering or sanctions evasion, since these transfers often take place peer-to-peer, without oversight from traditional intermediaries like crypto exchanges. Sumsub’s State of the Crypto Industry 2026 report likewise finds that unhosted wallets are one of the most operationally sensitive areas in crypto compliance, with 74% of crypto firms now prioritizing verification accuracy. This reinforces the need for applying risk‑based controls to ownership checks, using appropriate verification methods.
“Crypto has entered an era of regulated maturity. Firms now need to demonstrate that their control frameworks stand up to real scrutiny, without sacrificing conversion or scalability,” said Andrew Novoselsky, Chief Product Officer at Sumsub. “That’s why we support all four commonly accepted unhosted wallet verification methods for VASPs—fully automated and embedded into transaction flows keeping the user journey fast and intuitive.”
With Satoshi Test, VASPs can run unhosted wallet ownership checks as an integrated part of their Travel Rule workflows. Users verify ownership by sending a small, predefined amount within a set timeframe, and Sumsub validates the transaction and originating wallet before marking the wallet as verified and allowing the deposit or withdrawal to proceed.
Key benefits include:
- Automated, in-flow verification: A strong and secure method for proving wallet ownership, fully automated and managed by Sumsub. Embedded directly into deposit and withdrawal flows, it removes manual reconciliation and off-platform checks, ensuring a frictionless user experience.
- On-chain confirmation of wallet control: Have users confirm ownership by sending a small, predefined amount from the wallet being verified to a designated address. Sumsub then validates the transaction and originating wallet details on-chain to confirm control.
- Mitigation of pseudonymous transaction risk: Confirm and attribute ownership of the self-hosted wallet directly to the wallet holder before funds move on-chain, reducing the risk of transfers to addresses they do not control.
- Broad wallet and blockchain network coverage: Support any wallet and over 100 blockchain networks.
To learn more about Sumsub’s Unhosted Wallet Verification, please visit: https://sumsub.com/unhosted-wallet-verification/.
