Visual Proof Method
The Visual Proof Method can be a screenshot or a video clip of the user's wallet, or wallet software, displaying the desired withdrawal address.
Screenshot:
The self-hosted wallet owner will take a screenshot of their wallet software displaying the withdrawal address. This screenshot will be uploaded or sent to the virtual asset service provider (VASP), also known as a crypto service provider (CASP) in the EU, for the compliance team to review.
The transaction will be approved if the address in the screenshot matches the desired withdrawal address.
Video Clip:
The process remains the same; the only difference is that the user will film their wallet software displaying the withdrawal address.
Pros and Cons:
While visual proofs are easy to perform with every wallet or software, they are incredibly susceptible to fraud. Anyone with basic computer knowledge can edit the images to suit their needs. Additionally, the images need to be manually reviewed by a VASP's compliance team resulting in a slower transaction turnaround time.