Prove Self-hosted Wallet Ownership with AOPP and BitBox02

Before we explain how the Address Ownership Proof Protocol (AOPP) works with BitBox02, let’s briefly examine what AOPP and BitBox02 are.

Address Ownership Proof Protocol (AOPP)

While self-hosted wallets are not regulated entities, many countries also include transfers between virtual asset service providers (VASPs) and self-hosted wallets in their Travel Rule regulations. This prevents unidentified transfers, which could otherwise create loopholes and undermine the effectiveness of the Travel Rule.

For transactions involving a VASP and a self-hosted wallet, VASPs must request proof of ownership for the self-hosted wallet. There are 4 ways to prove this ownership, and AOPP is one of them.

AOPP, an open protocol developed by 21 Analytics, is one of the safest and easiest proof of ownership methods. 

AOPP is similar to the Manual Signing method, offering the same pros. In addition, it is fully automated for both the wallet owner and the VASP. There is no copying and pasting of addresses, it cannot be forged, and it isn’t a lot of work: it is a single-click experience. 

BitBox02

Developed in Switzerland by Shift Crypto, BitBox02 is a piece of hardware that resembles a pen drive and is used to store cryptocurrencies such as Bitcoin, amongst others. Also known as a hardware wallet, BitBox02 is a secure and offline option for storing crypto assets. 

To transfer or receive crypto assets, users must connect the device to their PC or smartphone and proceed using the BitBoxApp.

How AOPP and BitBox02 work together

Both AOPP and BitBox02 aim to simplify the user’s experience and work well together in doing so.

First, the wallet owner connects their BitBox02 to their device, opens their VASP’s withdrawal page in a browser, and initiates their transaction.

Next, using a link generated by the VASP, the user begins the wallet ownership verification process via the AOPP Portal and their BitBox02.

Within the AOPP Portal, the user selects their wallet type: BitBox. Then, the user proceeds to their BitBoxAPP. 

The user will see an Address request in the BitBoxApp. By clicking Continue, the user will be directed to their wallet, where they will complete the signing process.

Within the wallet, the first step will be to  Sign Message, which needs to be selected. After doing this, an address will appear. The user must confirm that the displayed address matches the one they intend to prove ownership of. If the addresses match, they can proceed to sign the message.

A success message will appear in the BitBoxAPP and in the AOPP Portal. 

The wallet owner can return to their exchange and start transacting while complying with the Travel Rule.

To find out more about AOPP and its functionalities, request a demo today.