For centralized exchanges, asset custody inherently brings heightened compliance responsibilities. As global anti-money laundering (AML) requirements continue to evolve, automated on-chain risk control systems have become a core component of exchange infrastructure.
The primary risks faced by exchanges include high-risk fund inflows, hacked asset movements, fraud-related transfers, and interactions with sanctioned addresses. Traditional manual review processes are no longer sufficient to handle the rapidly growing volume of blockchain transactions.
Trustformer KYT provides real-time risk screening capabilities that automatically analyze fund sources during user deposits, withdrawals, and trading activities. The system leverages address risk labeling, behavioral analytics, and fund flow tracing to generate risk scores for every transaction.
Operational teams can configure automated response strategies based on risk levels, including:
- Automatically freezing high-risk deposits
- Flagging suspicious accounts
- Triggering manual review workflows
This automated approach not only improves risk management efficiency but also reduces false positives, helping maintain a smoother user experience.
In addition, risk screening records can serve as compliance audit documentation, providing transparent evidence of fund flows during regulatory investigations or internal audits.
By deploying Trustformer KYT, exchanges can establish a scalable and resilient risk control framework, enhancing security while meeting evolving regulatory expectations.