Who needs to do a Satoshi Test?
Currently, the Satoshi Test needs to be done by Singapore users only.
What is a Satoshi Test?
A Satoshi test typically refers to a small transaction of a cryptocurrency involving a very tiny amount of the coin. Although it is named after Bitcoins smallest unit, the Satoshi, which is equivalent to one hundred millionth (0.00000001) of a Bitcoin, transactions of other cryptocurrencies for the same purpose are also often referred to as Satoshi Test.
These tests are conducted to ensure that a non-custodial (self-hosted / private) wallet or payment system is functioning correctly, and also to verify that the non-custodial wallet where these transactions are going to or coming from are owned by the user. They can also serve as a practical way to confirm that transactions can be sent and received accurately without risking significant amounts of cryptocurrency.
Why is a Satoshi Test required?
Satoshi Test is required under Singapore’s anti-money laundering standards for transactions involving private wallet addresses, as a way to verify the ownership and control over the private wallet address.
For which transactions do I need to do a Satoshi Test?
The Satoshi Test needs to be done when:
Adding and verifying a new non-custodial wallet to your whitelist addresses on Bake
Using and verifying an existing non-custodial wallet from your whitelisted addresses on Bake
Verifying a deposit from a non-custodial wallet to your Bake account
What is the difference between a platform (custodial) and private (non-custodial) wallet?
The major difference between a private (non-custodial) wallet and an address belonging to a platform (custodial) is the ownership of the private keys.
Your deposit address with Bake is an example of an address belonging to a platform (custodial). Also, deposit addresses on most centralized exchanges (for example Binance, Kraken or Coinbase) belong to a platform (custodial). When an address belongs to a platform, the platform/service owns the private keys and holds your assets in custody.
The DeFiChain Wallet, Metamask or TrustWallet are examples of a private (non-custodial) wallet. With a private wallet, the user alone owns the private keys and has full control over the wallet.
Do I need to do a Satoshi Test with every new transaction?
No, the Satoshi Test needs to be done only once for each private (non-custodial) address, both for withdrawals and deposits. Once you have verified your non-custodial address with a Satoshi Test, you do not need to do this a second time for the same address.
Can I still use the Satoshi Test to verify my non-custodial wallet if it doesn’t have any tokens in it?
If you want to use the Satoshi Test, you will have to deposit some tokens into your personal wallet (non-custodial) first before starting the Satoshi Test.
How much do I need to use for the Satoshi Test?
The exact amount in the crypto/token chosen for the Satoshi Test will be shown on the screen. Usually it is a small amount equivalent to US$1.
What happens to the tokens I send for verification?
Tokens that you send for verification will be credited to your Bake account.
Can I use any tokens for verification?
You will be given a list of tokens that are supported for verification. Please do not send any tokens that are not listed on Bake as part of the Satoshi Test transactions. Only send tokens supported on Bake, and shown as an option during the verification prompts for that address.
Here is the list of cryptocurrencies Bake accepts for the Satoshi test:
USD Coin (USDC)
Euro Coin (EUROC)
Doge Coin (DOGE)
Bitcoin Cash (BCH)
Also please make sure to use the same transfer network as mentioned on the deposit screen. For more information about transfer networks, please check this article: Transfer Networks FAQs.
My Satoshi Test timed out, what can I do?
You have 24 hours to make the deposit once the Satoshi test is initiated. You can choose to retry the verification if you are sure that the information provided during the verification is entirely correct.
If you’ve made a mistake during the verification, you can opt for a refund if you’ve met all the requirements.
Alternatively, you can choose to verify a different wallet address instead.