What is KYT
2024-09-01
KYT (Know Your Transaction) is a fintech tool designed to monitor and analyze transactions on blockchain networks in real-time.It leverages big data analytics, machine learning, and artificial intelligence technologies to help financial institutions identify and prevent potential money laundering, terrorist financing, and other illegal activities.The primary goal of KYT is to ensure the legality and transparency of every transaction, thereby enhancing the overall security and compliance of the financial system.
Why does RWA Exchange implement KYT?
RWAEX places a high emphasis on risk control and compliance management, which are the core principles of the platform's operations and key values for its long-term development.Through strict compliance measures and risk control strategies, RWAEX is committed to providing users with a safe and reliable trading environment, ensuring that every transaction complies with international and local laws and regulations, thereby safeguarding the interests of all users.
To further strengthen risk management, RWA Exchange not only requires users to undergo KYC (Know Your Customer) verification but also employs KYT (Know Your Transaction) technology to monitor and analyze transaction behaviors.KYT can effectively identify and resolve potential risks associated with digital currencies received by users, preventing illegal activities and ensuring the platform's security and compliance.
How does RWA Exchange implement KYT?
- The RWA Exchange system automatically initiates KYT, no action is required on your part.
- Customers need to undergo KYT verification when depositing and withdrawing digital currencies on RWA Exchange.
- RWA Exchange only trades digital currencies that pass KYT risk levels of Low / Moderate.
Next, we will introduce in detail how RWA Exchange conducts KYT verification of digital currencies.
KYT process for depositing digital currencies
Users transfer digital currencies to their personal designated address on RWA Exchange.
The system performs the first KYT verification;
the RWAEX KYT system has accumulated over 200 million address tags and can identify various wallet addresses on global major trading platforms, including over 1,000 address entities, over 100,000 threat intelligence data, and over 90 million risk addresses, which assess transaction risks and label them as high or low risk.
After the first KYT verification, if the risk is high, the order will be marked as abnormal, and the asset amount will be temporarily frozen, while a new digital currency deposit address will be assigned to the user.
If the risk is low, the order proceeds normally.
Perform second KYT verification.(Repeat the above steps)
Based on the second KYT verification, if the risk is high, the deposit order will be marked as abnormal, and a new deposit address will be assigned to the user.
If the risk is low, the order status will be changed to complete, and the deposit will be successful.
KYT process for withdrawing digital currencies
The user initiates a withdrawal request.
The system performs the first KYT verification;
the RWAEX KYT system has accumulated over 200 million address tags and can identify various wallet addresses on global major trading platforms, including over 1,000 address entities, over 100,000 threat intelligence data, and over 90 million risk addresses, which assess transaction risks and label them as high or low risk.
If the first KYT verification labels it as low risk, the order status changes to processing.
Perform second KYT verification.(Repeat the above steps)
Based on the second KYT result, if the risk is high, the order fails.
If the risk is low, RWAEX will transfer the digital currency to the customer’s designated withdrawal address.
