The KYT Framework stands for “Know Your Transaction.” It is a compliance tool that helps organizations monitor and analyze cryptocurrency transactions to identify potential risks, such as money laundering or fraud.This framework uses advanced analytics and blockchain data to assess the legitimacy of transactions. It examines the source of funds, the history of wallets, and the transaction patterns to spot any suspicious or unusual activity.By implementing the KYT Framework, businesses can maintain regulatory compliance and enhance their security measures. This not only protects their operations but also fosters trust among users and regulators.Overall, the KYT approach emphasizes the importance of transparency and due diligence in the management of cryptocurrency transactions. It aims to create a safer and more responsible environment for trading and investment.