HOMEFAQWhat Is KYT (Know Your Transaction) & When Should I Use It?

What Is KYT (Know Your Transaction) & When Should I Use It?

Savl is the only application with this functionality built-in - but what is it?

If you haven’t been living in a cave, you might know that a small fraction of crypto transactions is illicit and illegal. Such activities can include - but are not limited to: money laundering, child pornography, drug marketplaces, scams, hacking, fraud, theft, and sanctions circumvention.

Luckily crypto runs on the blockchain with publicly available ledgers where all transactions and their sources are public and immutable (they cannot be edited/changed). This means assets can be tracked back to their source.

KYT checks allow you to minimize risk by verifying that the party you are about to transact with isn’t holding assets from the proceeds of such activities so that you can avoid the following:

  • Getting your wallet infected with suspicious assets
  • Entanglement with criminals or criminal enterprise
  • Other adverse consequences e.g., blacklisting

Running KYT checks will make crypto safer by keeping the ecosystem cleaner and ensuring that ethics and ethical behavior become commonplace.

It is important to note that KYT checks are not a magical solution that removes all risks from crypto - in the same way, you cannot remove all risks from financial transactions in the traditional financial ecosystem. A low-risk assessment today could become a high-risk tomorrow. Nothing is static for long. 


Disclaimer: KYT Checks do not constitute legal advice and should only be part of your risk minimization assessment/decision-making toolkit. Savl does not offer legal or financial advice. You are responsible for your own decisions and actions. KYT provides only a risk minimization assessment based on available blockchain and publicly available ledger information at the time of your check. Results may vary depending on KYT methodology and provider. Always be responsible.