The automated Satoshi Test completes a four-method verification suite for unhosted wallet ownership — embedded directly into transaction flows
Unhosted wallets have become one of the most operationally sensitive problems in crypto compliance. Transactions involving them move peer-to-peer, without the intermediary oversight that traditional exchanges provide, creating meaningful exposure to money laundering, sanctions evasion, and other illicit activity. Regulators have noticed — and so have the firms trying to stay ahead of them.
Sumsub is now adding the automated Satoshi Test to its Unhosted Wallet Verification solution, completing coverage of all four widely accepted methods for proving wallet ownership. The addition allows virtual asset service providers to run ownership checks as a fully integrated, automated step within their existing transaction flows — without sacrificing speed or user experience.
What the Satoshi Test Does
The Satoshi Test, also known as microtransaction verification, works by asking a user to send a small, predefined amount from the wallet being verified to a designated address within a set timeframe. Sumsub then validates the transaction and the originating wallet details on-chain, confirming the user controls the wallet before allowing a deposit or withdrawal to proceed.
It is a simple mechanism, but a consequential one. By requiring an on-chain action that only the wallet’s actual owner can perform, it closes the gap between a user claiming ownership and demonstrating it — directly attributing control of a self-hosted wallet to a specific individual before funds move.
Four Methods, One Solution
With the Satoshi Test now in place, Sumsub’s Unhosted Wallet Verification solution covers the full spectrum of commonly accepted ownership proof methods: Digital Signature, Self Declaration, Screenshots, and microtransaction verification. All four are embedded directly into deposit and withdrawal flows, removing the need for manual reconciliation or off-platform checks.
The approach is deliberately flexible. Different jurisdictions apply different standards to unhosted wallet verification, and firms operating across borders need the ability to apply verification methods that align with their specific risk-based policies. Supporting all four methods in a single, integrated solution allows VASPs to adapt as regulatory expectations evolve — without rebuilding their compliance infrastructure each time they do.
“Crypto has entered an era of regulated maturity,” said Andrew Novoselsky, Chief Product Officer at Sumsub. “Firms now need to demonstrate that their control frameworks stand up to real scrutiny, without sacrificing conversion or scalability.”
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Why This Matters Now
The timing reflects a broader shift in how regulators are approaching crypto. The Financial Action Task Force has explicitly warned that unhosted wallets and stablecoins elevate the risk of illicit transfers, precisely because they lack the intermediary oversight that traditional financial infrastructure provides.
Sumsub’s own State of the Crypto Industry 2026 report finds that 74 percent of crypto firms now prioritize verification accuracy as a core compliance concern — a signal that the industry is moving from checkbox compliance toward frameworks that can withstand genuine regulatory scrutiny.
The Satoshi Test integration supports over 100 blockchain networks and is compatible with any wallet type, giving VASPs broad coverage without requiring custom configuration per network.
