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Introducing Bitcoin Wallet Verification with SafeConnect

The Notabene Team
The Notabene Team
March 11, 2024
A member of the Notabene team crafted this post.

As Travel Rule regulations expand to include more counterparty types, customers engaging in non-custodial need a reliable method to verify self-hosted wallet ownership.

SafeConnect, a flagship offering from Notabene, is stepping up to meet this demand by extending its self-hosted wallet verification capabilities to include Bitcoin wallet verification, aiding virtual asset service providers (VASPs) in compliance with various wallet counterparty types. 

Aligning with Regulatory Developments

In its October 2021 guidance, the Financial Action Task Force (FATF) broadened the Travel Rule's scope to include transactions between VASPs and self-hosted wallets. This extension necessitates collecting and sometimes verifying information about the self-hosted wallet's owner by VASPs. 

Further, the forthcoming Transfer of Funds Regulation in Europe, taking effect this December, stipulates that for transactions exceeding 1,000 EUR, crypto-asset service providers must verify the ownership or control of the self-hosted address by the client conducting the transaction. VASPs facilitating self-hosted wallet transactions in all 27 EU member states must have a solution to verify wallet ownership of the broadest range of self-hosted wallets possible. 

Introducing Bitcoin Wallet Verification Proofs

Our self-hosted wallet verification tool, SafeConnect, enables customers to verify self-hosted wallet ownership on 200+ Ethereum-based wallets. Today, we expand its capabilities to facilitate Bitcoin wallet verification. Previously focused on Ethereum proofs, SafeConnect now transcends this boundary to embrace Bitcoin verification, accommodating a broader spectrum of digital assets. This enhancement is crucial, considering the FATF's emphasis on accommodating all virtual asset types and the TFR's requirement for rigorous verification processes for significant transactions.

How it works

  • Customers connect their Ledger or Trezor hardware wallets to SafeConnect.
  • SafeConnect automatically searches for the Bitcoin address associated with the transaction.
  • Once the address is found, the customer will be are prompted to sign a wallet ownership verification message on their device.
  • SafeConnect verifies the signature's authenticity and marks the transaction as ready to send.

Improving the Ethereum Proofs

This update also brings enhancements for seamless Ethereum-based wallet proofs. We’re scaling up to support over 300 Web3 wallets and extending our services to more than 10 EVM-based networks. This expansion will significantly broaden our ability to support Ethereum-based wallet ownership proofs.

How to Get Started

Current customers have access to these updates by updating to the latest version of SafeConnect. Other interested parties can book a demo with our team.