Self-Hosted Wallet Rules

Self-hosted wallet rules are the obligations placed on regulated firms when funds move between them and a wallet the customer controls themselves. The regulated party is the firm, not the wallet: an exchange sending to or receiving from a self-hosted address may be required to identify the counterparty, record who owns the destination, or in some frameworks verify that the customer actually controls it. That verification is why exchanges ask for a signed message, a small verification transfer or a screen recording before releasing a withdrawal to a new address. The rules differ by jurisdiction and are still being written in several, so a step that is routine at one venue may not exist at another. What is broadly consistent is the direction of travel: the burden falls on the licensed intermediary rather than on the individual holding their own keys.