Private Key Control Procedure (PKCP)
Self-hosted wallets (also referred to as unhosted wallets) fall under the scope of the FATF’s Travel Rule. When a transaction occurs between a VASP and a self-hosted wallet, the wallet owner needs to demonstrate that they control the private key linked to it*.
VASPs can safeguard against sending funds to wallets their user does not control by requesting a proof of private key ownership.
Private Key Control Procedure can be conducted in various ways, namely via:
Manual Signing, or
Read more about self-hosted wallet private key control methods here.
Private Key Control Procedure is also known as Wallet Ownership Proof.
*Different regions have different interpretations of this Recommendation. Be sure to verify what your region requires before proceeding with a transaction.