KYT — know your transaction — is the ongoing screening of crypto transfers and the addresses behind them, run at the moment money moves rather than once at account opening. It answers what a payment is connected to: a sanctioned entity, a darknet market, a mixer, a stolen-funds cluster, an unlicensed venue. Where KYC identifies the customer, KYT watches what the customer's money touches.
A verified customer can still deposit funds that came from a ransomware wallet. Identity documents describe the person; they say nothing about the origin of the coins, and in crypto the origin is the part that gets a business into trouble. KYT is the control that covers the gap, on every transfer, for as long as the relationship lasts.
It also runs in both directions. Screening deposits protects what you accept; screening withdrawals protects where your customers send money, which is the side supervisors ask about when they want to know whether you were servicing an unlicensed venue.
The other thing KYT changes is timing. Onboarding checks happen once, at the moment a customer has the least to hide and the least history to read. Transaction checks happen at every point where money actually moves, which is where the facts are, and where a decision is still worth something.
A KYT result is an alert with a verdict word, a recommendation and the drivers named in plain language, attached to a specific transfer and a specific counterparty address. Where the counterparty is attributed, the entity is named — an exchange, a payment processor, a gambling venue, a market.
In the workspace those alerts form a queue: each one has an owner, an escalation path and an audit trail, and categories are filters you can build a policy around. Through the API the same check runs before you credit a deposit or release a withdrawal, on 10 chains at full AML depth and 35+ networks screened, against 20+ intelligence sources. For a one-off address, the Telegram bot answers free, three checks a day.
Supervised businesses handling virtual assets are generally expected to monitor transactions on a risk basis; the FATF's virtual assets work is the standard-setting reference ([FATF](https://www.fatf-gafi.org/en/topics/virtual-assets.html)), and the binding text is whatever your own supervisor has enacted.
No. They answer different questions. KYC establishes who the customer is; KYT establishes what their money is connected to. Passing one tells you nothing about the other.
A named connection on the transfer: an address on a sanctions list, a counterparty attributed to a darknet market or an unlicensed venue, funds arriving from a mixer or a drainer, or a counterparty on your own restricted list.
Also available in: · · ·
Yes, and it should. Where a customer sends money is as much a part of your record as where it came from.
Send any wallet to the Telegram bot and get a verdict in seconds. Three checks a day, free, no signup. Desks that screen every deposit run it on plans from $199/mo.