Screen the transaction, before it settles you.
Transaction screening against configurable policy: inbound deposits, outbound withdrawals and counterparty exposure, evaluated as transfers are observed rather than in a monthly review.
What is KYT in crypto?
KYT, or Know Your Transaction, is the continuous screening of blockchain transactions for money-laundering and sanctions risk. Where KYC verifies who a customer is, KYT monitors what their transactions do — scoring counterparty exposure, flagging sanctioned entities, and producing the audit record a regulator expects a VASP to hold.
What KYT screening covers.
This is compliance tooling. It supports a programme; it does not constitute one, and it does not certify anybody as compliant.
Deposit screening
Evaluate an inbound transfer's exposure before crediting it.
Withdrawal screening
Check a destination address against policy before broadcasting.
Counterparty exposure
Direct and indirect exposure by category, within your configured hop limit.
Policy thresholds
Value bands, category rules, hop limits and per-jurisdiction variations.
Case creation
A screening hit can open a review case with the evidence already attached.
Audit record
Every screening decision is recorded with policy version, inputs, result and reviewer.
From transfer to disposition.
Transfer observed
The transaction is normalised and its counterparties resolved.
Policy applied
Your active rule set is evaluated. Policy version is recorded.
Result issued
Pass, review or block, with the contributing signals attached.
Review
A human reviews anything not auto-passed, with a reason recorded.
Disposition
Credit, hold, refuse or escalate — your decision, your policy.
Retention
Inputs, policy version and outcome retained for your audit period.
The platform issues a screening result. It does not credit, hold, refuse or report on your behalf, and it does not determine your obligations. Those sit with you and your regulator.
Plainly.
We describe this as compliance tooling. We do not claim to make any organisation 'fully compliant', because no software can, and any vendor telling you otherwise is selling you a liability.
Travel Rule compliance, KYT and what VASPs are actually required to do
KYT in crypto is the monitoring layer. The Travel Rule is the transmission obligation sitting beside it. They are frequently conflated and they are not the same requirement.
KYT — know your transaction — means continuously screening blockchain activity for money-laundering and sanctions exposure. KYT AML programmes score counterparty risk and produce the audit record a supervisor expects. The KYT crypto meaning is often stretched to cover everything a compliance team does, which is why it helps to be precise: KYC verifies the customer, KYT monitors the transaction.
The Travel Rule requires a VASP to transmit originator and beneficiary details alongside transfers above a threshold, extending long-standing wire-transfer rules to virtual assets. VASP Travel Rule compliance depends on the counterparty being reachable and willing to exchange data, so implementation quality varies far more than the rule itself does. Thresholds and timing differ by jurisdiction.
Evaluating a KYT provider
Ask how a score is constructed, whether the weights are published, and what the provider says when the data is ambiguous. A KYT solution for crypto crime detection that cannot explain a score cannot defend one.
Related reporting obligations
Frameworks such as DAC8 extend tax-reporting duties to crypto-asset service providers in some jurisdictions. Which apply to you is a question for counsel — nothing here is legal advice. Risk disclosure.