KYT (Know-Your-Transaction)

Know-Your-Transaction (KYT) is the practice of screening individual cryptocurrency transfers in real time to assess their risk, as opposed to KYC which verifies the identity of a customer.

Where KYC answers 'who is this user', KYT answers 'is this specific transfer risky'. A KYT check evaluates the counterparty address and transfer against risk models and sanctions data, returning a decision — typically allow, review or block — that an exchange or wallet routes inline at deposit and withdrawal. Effective KYT pairs a counterparty risk-score with an exposure breakdown so compliance teams can audit why a transfer was flagged.