Prove wallet ownership: your exchange wants proof the wallet is yours

Why is my exchange asking whether the wallet is mine?

Since 1 September 2023, UK cryptoasset businesses have had to collect, verify and share information about crypto transfers, often called the travel rule. The FCA has set out what it expects from firms. In practice, many exchanges also ask you to show that an external wallet you send to or receive from is your own: a wallet you control yourself, such as a hardware wallet or an app on your phone. Exchanges based in the EU have had similar rules since 30 December 2024.

So the question is not an accusation. It is a check the exchange has to carry out. Even so, it can feel as if you are being asked to justify yourself, especially when your withdrawal is on hold in the meantime. If the question is really about where your money came from, Paucitas can help with that too.

Is a request like this always genuine?

Usually, but not always. Scammers love the word “verification”. A message saying your wallet needs to be “linked” or “validated” can be fake. Signs that it might be a scam:

• the request arrives through a link in an email, text or chat, not through your own account;
• you are asked to enter your recovery phrase (seed phrase) or private key;
• you have to send money or crypto first to “release” your wallet;
• there is time pressure, for example “within 24 hours or your balance is lost”.

A genuine exchange will never ask for your recovery phrase. Recognise one or more of these signs? That does not automatically mean it is a scam, but it is a good reason to have someone look at it before you do anything.

I cannot prove wallet ownership: what now?

Sometimes you simply cannot take the step you are asked to take. You no longer have access to the wallet, the app has disappeared, or the crypto originally came from a platform that no longer exists. The withdrawal or deposit then stays stuck, and you often get nothing but standard replies.

That is not the end of the road. The blockchain keeps every transaction. From it, it is often possible to show that an address has been linked to your own accounts for years, which amounts you deposited and withdrew, and how the crypto reached you. Sometimes it turns out you still have technical access to your own wallet, and Paucitas helps you get back into it. Sometimes a clear overview is enough to move things forward with the exchange or your bank.

Let Paucitas take a look, so you quickly know where you stand instead of waiting for a reply.

What can you do with the Paucitas report?

For an ordinary verification request, the report gives the exchange or your bank a clear basis to move forward. Do you suspect the request was fake, or have you already entered details or sent money? Then the report shows whether there is still money available, or where it has gone, and what the next steps are, such as a report to Report Fraud, or to Police Scotland if you live in Scotland. The Paucitas report is a strong attachment to that, because it sets everything out fully and clearly. A bank can also ask questions about money that comes from crypto; Paucitas can help you answer those as well.

What Paucitas does for you

Paucitas looks into the whole story, not just one transaction. Which addresses belong to you, how did the crypto come in, which platforms did it pass through, and how does that match your bank statements and exchange records? Paucitas does all the tracing itself, without tracing tools. On top of that, Paucitas reads through all the documents, emails, messages from the provider and other communication, so you get a complete picture, with a timeline and where all the money came from and went, step by step. You receive a report that anyone, including the exchange or the bank, can follow and understand step by step.

You supply what you have: wallet addresses, exchange statements, bank statements and the messages from the exchange. You do not need everything; Paucitas helps you gather it. Every investigation is tailored. You receive a bespoke quote in advance that we go through together, with no surprises. Turnaround is from the same day to around two weeks. You can call any time, 24/7, on +31 20 244 5774, through the contact form you will hear from us within 1 to 3 hours, and we answer emails within 24 hours, usually the same day.

Sources: FCA, expectations for the travel rule; Action Fraud; Police Scotland.