KYT stands for “Know Your Transaction.” It refers to a set of requirements aimed at ensuring the transparency and legitimacy of transactions involving cryptocurrencies. While KYC (Know Your Customer) focuses on identifying users, KYT emphasizes monitoring the flow of funds.KYT practices involve tracking transactions to identify patterns that may indicate illicit activities, such as money laundering or fraud. This process often utilizes advanced analytics and blockchain monitoring tools to scrutinize the source and destination of funds.By implementing KYT measures, businesses can mitigate risks associated with compliance and security. It helps in establishing a robust framework for understanding where funds come from and how they are utilized, promoting accountability within the ecosystem.Overall, KYT supports the integrity of the financial system by aiming to prevent the use of cryptocurrencies for illegal activities while fostering trust among users and regulators alike.