Compliance – Proving
ownership of cryptocurrencies
Do you own Crypto Currencies and need to prove that to someone without revealing the Private Key? Or do you need to check if someone really owns the assets they are claiming to hold? Or do you have any questions regarding crypto currency inheritances? In either case we just have the right offering for you.
We help you to understand the principles on how to prove ownership of crypto currencies without revealing your private key. We also introduce you to the tools needed for this verification so you can conduct this verification on your own in the future.
We check the ownership and transactional history of crypto currencies either for your own assets or for some third-party assets you need to have checked (e.g. if you are an auditor). After our check we issue a certificate that can be used for verification of ownership.
The issue of proving ownership or authenticity isn’t new to crypto currencies. With the technology behind crypto currencies there is a secure way to prove that an asset a) exists, b) really belongs to the person / company claiming to own it and c) the balance is correct.
Trustees / Ficuciaries
Buyers / Vendors of cryptocurrencies
Peer-to-Peer buying or selling of crypto assets
Personal proof of ownership of crypto assets to use them as collateral
Prove to tax or any other authorities your crypto asset positions
Officially inherit crypto assets to your heirs
Custodians who need to prove ownership of crypto assets on behalf of their clients
SRO’s can prove ownership of the cryptocurrencies of its members (and their respective clients)
Banks who require proof of ownership from their clients
Trade finance transactions paid with crypto assets
With Public Key cryptography, which is used in Blockchains and other Distributed Ledger Technologies (DLT), the ownership of the assets is directly linked to the correspondent Private Key. In order to prove ownership of these crypto currencies you need to prove that you know the respective Private Key. However, revealing the Private Key itself would be inappropriate due to a number of reasons. The most critical being that you compromise the security of your crypto currencies (the counterparty knowing your Private Key can do everything with your crypto currencies).
Therefore, it doesn’t make sense to share the Private Key directly in order to prove ownership. Some companies prove ownership by transferring a small amount from the respective address to the address of the third-party that wants to check ownership. However, also this method is prone to fraud and not reliable at all. For example, I could instruct a crypto exchange to transfer some amount to a third-party address. If that crypto exchange transfers this amount from an omnibus wallet the third-party could wrongly assume that I have ownership of all the funds on the respective address although I obviously don’t have.
The most reliable way to prove ownership of crypto currencies is to sign a specified message with your Private Key. By doing so, the third-party can verify that the counterparty really knows the respective Private Key without the need of revealing the very key or having to send a transaction.
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6300 Zug, Switzerland
+41 79 944 1616