Wallet Ownership Proof
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’s ownership is to be proved*.
VASPs can safeguard against sending funds to wallets their user does not control by requesting a proof of private key ownership.
Wallet ownership can be proved in various ways, namely via:
Manual Signing, or
By Visual Proof (or Screenshot).
Read more about self-hosted wallet verification methods here.
Wallet Ownership Proof is also known as Private Key Control Procedure (PKCP).
*Different regions have different interpretations of this Recommendation. Be sure to verify what your region requires before proceeding with a transaction.