As global regulators continue to intensify oversight of the crypto asset sector, crypto compliance has become a central issue in industry development. A robust compliance framework is not only a tool for meeting regulatory requirements, but also the foundation for preventing risks such as money laundering and fraud. Core components of compliance typically include Anti-Money Laundering (AML), Know Your Customer (KYC), and Know Your Transaction (KYT) monitoring.
Traditional KYC focuses on collecting and verifying user identity information, while AML systems require platforms to monitor, identify, and report potentially illicit financial activities. However, relying solely on KYC and conventional AML systems often proves insufficient when addressing increasingly complex on-chain behaviors. This gap has led to the adoption of KYT (Know Your Transaction) mechanisms, designed to conduct real-time risk identification for every on-chain transaction.
In today’s highly complex blockchain environment, professional solutions such as Trustformer KYT automatically analyze transaction fund flows, detect abnormal capital movements, identify potential money laundering chains, and flag high-risk transaction behaviors. This provides technical support for building a multi-dimensional risk control framework across platforms.
At the same time, a comprehensive compliance system must align with global regulatory requirements — from data retention and regulatory reporting to audit readiness — forming a dynamic and traceable compliance workflow. Through well-structured compliance practices, platforms can better safeguard user assets and ensure sustainable business growth.