What KYT does
KYT is the screening layer for crypto AML compliance. Where traditional AML transaction monitoring looks at fiat flows in and out of an operator, KYT looks at on-chain provenance. Every deposit is traced backwards through the chain (the chain is fully public) and scored against the operator’s risk policy. Outbound transactions are similarly screened to confirm the destination wallet is not sanctioned or otherwise high-risk.
The screening covers OFAC and equivalent sanctions lists (SDN, UK, EU, UN), exposure to known mixers (Tornado Cash, Wasabi, Samourai), exposure to darknet markets, exposure to hack proceeds, exposure to high-risk exchanges, and behavioural patterns associated with money-laundering typologies.
How KYT integrates into operator stacks
KYT is delivered as an API by specialist providers (Chainalysis KYT, Elliptic Navigator, TRM Labs, ComplyAdvantage, Crystal). The operator’s crypto payment gateway calls the API for every deposit and withdrawal, receives a risk score and a structured exposure report, and applies a policy: auto-credit below threshold, manual review at higher levels, refuse outright at the highest. Configuration is operator-specific and risk-tier-dependent.
KYT is now baseline scope for any regulated crypto-accepting operator. UKGC, MGA, and similar regulators expect documented KYT in every operator AML programme that processes crypto.
Why KYT matters in B2B
For compliance, KYT is the operational expression of crypto AML obligations. Without KYT, an operator cannot demonstrate that crypto inflows are screened for sanctions exposure, which is grounds for licence action in every major regulated market. For platform vendors and crypto payment gateways, KYT integration is a procurement-grade requirement. For operators, KYT licence fees (typically 10,000 to 200,000 dollars per year by volume) are a fixed cost of running a crypto-accepting business. Gamblers Connect references compliance disclosures across crypto operators in the iHub directory.
Frequently asked questions about What Is KYT (Know Your Transaction) in iGaming?
Chainalysis KYT and Elliptic Navigator are the two market leaders. TRM Labs and Crystal Blockchain (Bitfury) follow. Most crypto payment gateways bundle one of these providers under the hood; larger operators sometimes contract direct with two providers in parallel for redundancy.
KYC verifies the customer’s identity. KYT verifies the on-chain transaction’s provenance. KYC asks who you are; KYT asks where this money came from on-chain. Both are required for crypto-accepting operators.
Yes. KYT scores look at the wallet’s transaction history. A wallet may be newly funded with clean assets but have prior exposure to a mixer or sanctioned counterparty several hops back. Operators set their tolerance for indirect exposure as part of risk policy.
Pricing is typically per transaction screened (a few cents per check) or annual licence based on volume. Total cost ranges from 10,000 dollars per year for small operators to several hundred thousand for high-volume crypto-native operators.