As crypto assets enter the mainstream financial system and are progressively integrated into traditional regulatory frameworks, blockchain compliance trends are rapidly evolving. Conventional compliance mechanisms have primarily relied on KYC (Know Your Customer) procedures and the submission of regulatory reports under frameworks such as the Gramm-Leach-Bliley Act (GLBA) and Financial Crimes Enforcement Network (FinCEN).
However, within the blockchain ecosystem—characterized by pseudonymity and seamless cross-border liquidity—identity verification alone is no longer sufficient to meet regulatory expectations.
As a result, KYT (Know Your Transaction) has evolved from a supplementary compliance tool into the core capability of crypto platforms’ anti-money laundering (AML) frameworks. Unlike traditional approaches that focus primarily on identity verification, KYT concentrates on risk analysis of on-chain transaction behavior. It enables the detection of malicious patterns such as address poisoning, mixer-related fund flows, and suspicious transaction routing—areas that conventional AML systems are often unable to comprehensively address.
Within this broader compliance transformation, solutions such as Trustformer KYT provide real-time on-chain monitoring and fund flow tracing capabilities. Beyond issuing alerts for abnormal transaction activities, the system can automatically archive case records, generate compliance reports, and deliver visualized analytics. This significantly enhances a platform’s ability to respond accurately and efficiently to regulatory requirements.
In an environment where regulatory standards continue to tighten, KYT is no longer an optional feature—it is an integral component of a platform’s core risk defense infrastructure.