Definition
Know Your Transaction (KYT) is the monitoring and risk-scoring of individual crypto transactions and wallet addresses to detect links to illicit activity — funds traced to hacks, scams, darknet markets, sanctioned entities, ransomware, or high-risk mixing services. Blockchain-analytics firms provide KYT tools that a business connects to its crypto flows, screening incoming and outgoing transfers against known-bad address databases and behavioural heuristics, and returning a risk rating that triggers action: accept, review, request more information, or reject and report.
KYT is the crypto-native complement to traditional KYC and transaction monitoring. Because public blockchains are transparent and permanent, the flow of funds can be traced in a way that cash cannot, which makes address-level risk screening both possible and, increasingly, expected of regulated businesses that handle crypto.
In context
For iGaming operators that accept crypto, KYT is becoming a standard part of the AML stack: screening the address a deposit comes from and the address a withdrawal goes to, scoring each for links to theft, sanctions, darknet activity or heavy mixing, and holding or rejecting transfers that score high pending investigation. It works alongside KYC (identifying the person) and the travel rule (sharing originator/beneficiary information between crypto businesses).
A licensed operator that accepts stablecoins or coins but runs no KYT is exposed to receiving proceeds of crime and to sanctions breaches.
For affiliates, KYT is background but it explains real player-facing behaviour and it is a legitimacy signal for reviews. A crypto withdrawal held for 'compliance review', or a deposit from a particular wallet rejected, is often a KYT result — the funds or the counterparty address scored as high-risk — not arbitrary operator behaviour, and content can set that expectation.
More importantly, the presence of proper KYT (and KYC, sanctions screening and travel-rule compliance) is part of what separates a licensed, responsibly run crypto-accepting operator from an 'anonymous, no-checks' site. Affiliate content should present crypto acceptance by a licensed operator as coming with the same AML scrutiny as fiat, note that transaction screening can cause holds, and never frame crypto or a specific coin as a way to avoid checks or move funds the operator could not otherwise accept.
Worked example
An affiliate's review of a crypto-accepting casino notes it runs blockchain transaction screening (KYT) alongside KYC, so deposits from flagged addresses can be rejected and withdrawals can be held for review if the destination scores high-risk. The review presents this as a compliance strength, not a drawback, and explains it is why crypto here is not check-free.
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