21 Travel Rule and the Satoshi Test Portal
Most jurisdictions implementing the Travel Rule have extended it to include self-hosted wallet transactions when a regulated entry is involved. In most instances, originator and beneficiary data is required, but proof of wallet ownership can be requested.
Moreover, many of these jurisdictions have mandated that proof of ownership be obtained via a technical means, like a Satoshi Test.
Many VASPs have noted that the Satoshi Test is time-consuming because if it is not fully automated on the VASP’s side, the compliance team needs to review and respond to the proof. Heeding this, 21 Analytics developed the Satoshi Test Portal to facilitate VASPs in this process. The Satoshi Test Portal streamlines the ownership experience for VASPs and customers.
How the Satoshi Test Portal Works From a VASP’s Perspective
In the Travel Rule software, 21 Travel Rule, VASPs must open the Self-hosted Wallets tab and click the Satoshi Test Link button in the top right corner. Through integrating with our API, all steps on the VASP’s side can also be fully automated.
Thereafter, a pop-up will appear. Here, the VASP needs to fill in the customer’s ID, the VASP’s deposit address, the customer’s wallet address, and the digital asset type, finally clicking the Get Satoshi Test Link.
After clicking Get Satoshi Link, a proof image will appear containing the status of the Satoshi Test, along with the data previously provided by the VASP. Most importantly, this pop-up will include the URL that must be shared with the customer to perform their Satoshi Test.
The customer will click on the link, complete the Satoshi and submit their transaction ID. Once this process has been completed, the proof will automatically appear in the Compliance Dashboard*.
*In rare instances, VASPs have requested to keep this process manual, which can also be done using 21 Travel Rule. Below, the process is described.
Detailed Inspection of the Satoshi Test
When the customer has submitted their transaction ID, the VASP will receive a notification on the Compliance Dashboard to verify whether the transaction was correctly executed.
Once reviewed, the VASP will click Approve to complete the ownership process.
How the Satoshi Test Portal Works From a Self-hosted Wallet Owner’s Perspective
The VASP will send the customer the Satoshi Test Portal link. Here they will find the amount to transfer, which address they need to transfer from and to, along with a timeframe to complete the transaction.
Once they have completed the transaction, they will add their transaction ID to the Portal and click submit.
After clicking submit, the customer will receive a message confirming that their address has been successfully registered.
The Benefits of the Satoshi Test
The Satoshi Test is a wallet verification method still favoured by many VASPs as it can be completely automated on the VASP’s side. Unlike screenshots, it is also a more trustworthy source of ownership and more reliable as it cannot be tampered with.
Find out more about the Satoshi Test Portal - reach out to us.
