KYT

KYT, or "Know Your Transaction," is the next step in compliance and security for financial institutions and cryptocurrency platforms. Unlike KYC, which focuses on verifying the identity of users, KYT is all about monitoring the transactions themselves. The goal is to detect any unusual or suspicious activity that might indicate fraud, money laundering, or other illegal actions. KYT systems use advanced algorithms and machine learning to analyze transaction patterns, flagging anything that doesn’t fit the norm for further investigation.

For cryptocurrency exchanges and other platforms, implementing KYT is a way to ensure that they’re not being used for illicit purposes, even if they’ve already verified the identities of their users through KYC. It’s an added layer of security that helps maintain the integrity of the platform by catching potentially harmful activities before they can do any real damage. KYT is particularly important in the crypto world, where the anonymity and speed of transactions can sometimes make it easier for bad actors to operate undetected.