KYT stands for “Know Your Transaction.” These guidelines focus on the processes and practices used to monitor and assess the risk associated with specific transactions within blockchain networks.The primary aim of KYT is to ensure that businesses can detect and prevent illicit activities, such as money laundering or fraud. This is increasingly important as regulators worldwide tighten their scrutiny of financial transactions.KYT involves analyzing transaction patterns, source of funds, and recipient data. By employing advanced analytics and tracking tools, firms can gain insights into potentially suspicious transactions.Implementing KYT guidelines helps companies remain compliant with financial regulations and creates a more transparent environment. It also builds trust among users, who expect secure and responsible handling of their funds.Overall, KYT guidelines play a crucial role in fostering a safer and more trustworthy ecosystem for all participants by prioritizing the integrity of transactions.