The Transfer of Funds Regulation (ToFR) resulted in many brokers and exchanges enforcing test transactions. Let’s explore why they can lead to problems and how the AOP protocol can fix them!

Since December 30, 2024, the “Transfer of Funds Regulation” (ToFR), also known as the “Travel Rule” came into effect in all member states of the European Union, with the goal of combating money laundering and other criminal activities making use of cryptocurrencies. To comply with this new regulation, many brokers and exchanges are starting to implement verification steps when withdrawing or depositing bitcoin and other cryptocurrencies from and to your exchange account.

While these regulations do not directly affect you as a BitBox customer, since the BitBox02 is an independent and self-custodial wallet, the mentioned verification procedures can still be annoying and lead to problems, many of the service providers may not have thought of. Let’s take a look at what “Satoshi Tests” even are, what to keep in mind when creating a test transaction and, most importantly, how this verification process could be greatly improved using the Address Ownership Proof Protocol (AOPP).

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