It saves money, exposes scammers and fraudsters, and helps businesses — but you probably don’t even know its name!

With related concepts like KYC/AML, everything is more familiar. In recent years, everyone suddenly needed access to crypto exchanges, and trading platforms — and all of them required KYC and AML, which had to be completed without question.

KYT is less intrusive, more useful, and far less known. But what is it really, and where did it come from?

AML (Anti-Money Laundering) refers to the full set of measures taken by financial institutions to counter money laundering and terrorist financing. A full-blown banking AML framework includes a wide range of rules based on FATF recommendations, international and national financial legislation, and internal banking policies. AML answers the question: “Are these transactions potentially illegal?” Violations of AML regulations often result in hefty turnover-based fines, not to mention reputational damage.

KYC (Know Your Customer) is a subset of AML focused on identifying and verifying customers: “Who is this person, what do they do, and why do they want to use our services?” As of 2025, failing KYC requirements also brings significant penalties.

If an individual wants to pay for Spotify, exchange crypto, send USDT, or trade on an exchange, they must submit a passport photo and verify their identity. For businesses, avoiding fines and audits means creating strict requirements for customers. And that’s where the letters KYC/AML enter the scene.

But who — or what — is KYT?

KYT is like the "payment purpose" field in a bank transfer — only for crypto. It doesn’t call anyone, ask for documents, or require explanations. It’s fully automated. No forms to fill in: transaction intent and context are recognized automatically using specialized software. KYT isn’t about ticking boxes for regulators — it’s about steering clear of dirty money and its owners by tracking digital footprints on the blockchain.

Whether you’re a business or a person, KYT matters. Businesses just need it much more often.

What does the crypto industry resemble most today? Many liken it to the Wild West — but it might be closer to Renaissance Italy.

The concept of "payment purpose" dates back to the late Middle Ages (14th-15th centuries). While money, credit, and tokens date to the Sumerians, and the Templars are credited with early non-cash payments, the birth of modern banking came from Renaissance Italy.

This era wasn’t just about Michelangelo, Raphael, or the Uffizi Gallery — it was also about merchants from Florence, Genoa, Venice, and beyond. These merchants deeply distrusted each other — many were outright swindlers or bandits. Yet, trade and the economy were booming. Everyone wanted a piece of the growing pie. But distrust stood in the way.

The foundation of any financial system is trust. Banks want to trust borrowers, depositors want to access their money, buyers and sellers want assurance that goods and payments are real, and intermediaries want to understand the true nature of transactions.

So how do you trade and grow in a world where no one trusts anyone?

Economist Avner Greif outlined two paths:

With banks came instruments like promissory notes and drafts. These included a “payment purpose” field. Why? Because no one trusted anyone. The bank became the trust broker.

Benefits of that field:

This field was foundational to modern banking and accounting. It allowed banks to create trust where none existed and enable trade.

Renaissance Italy became Europe’s financial powerhouse thanks to these innovations. While it eventually lost dominance, its legacy still shapes modern finance. The payment purpose field migrated to SWIFT, got digitized, and now lives in your banking app.

But the world has changed.

The Modern Mess

Today, the payment purpose field is overwhelmed.

On one side, tens of thousands of AML officers scan these fields daily, trying to decipher the economic sense behind trillions in global transactions. On another, frustrated customers face banks that feel more like bureaucracies. Then there’s the modern economy demanding instant payments. Tax authorities and regulators scramble to maintain oversight. Banks must balance earnings, infrastructure, and compliance. And of course, criminals spend millions of hours trying (and often succeeding) to bypass rules.

Enter Crypto

The 2008 financial crisis revealed that traditional financial institutions had lost control. Regulatory frameworks, central banks, auditors, and markets failed to prevent collapse. Meanwhile, banks were placing ever-growing KYC/AML burdens on users — and mismanaging their funds.

Satoshi Nakamoto proposed an alternative:

No one could deny you access to the system. No one could block your transactions. But everything would be visible. Always.

Seventeen years later, early Italian bankers might find the crypto scene oddly familiar.

Bitcoin remains the gold standard. But Nakamoto’s compromise didn’t satisfy everyone. Privacy advocates moved to ZCash and Monero. Tether complies with AML and freezes coins by request. Scammers felt right at home in the crypto world, promoting the toxic slogan: “Crypto is a scam.”

Maybe we’re just misusing Nakamoto’s legacy — and the whole idea of blockchain?

KYT: In the Footsteps of Nakamoto

The idea that crypto is for anonymous money overtook the idea of transparent money. But they were always two sides of the same coin.

Satoshi didn’t create shady money or tools for pump-and-dump schemes. He envisioned fairer money controlled by its owners. But control isn’t just about holding money. It’s also about knowing who you’re giving it to, and why.

Just as social media empowered citizen journalists, blockchain transparency empowers anyone to analyze transactions: investigative journalists, crimefighters, or someone just wondering where their payment went.

That’s where KYT (Know Your Transaction) comes in.

If transactions are public and transparent, they can be parsed, analyzed, and traced to determine their context and intent.

KYT today is leagues ahead of traditional AML analysis. And cheaper too.

1. Blockchain Transparency: Crypto transaction chains are more visible than traditional ones.

2. Fast-evolving analytics: Tools and AI/ML methods outpace the evolution of blockchains themselves.

3.Less human error: No calls, paperwork, or clarifications — just pure, data-driven analysis: wallet addresses, amounts, time, connections.

KYT is fast. Especially with BitOK’s solutions. Fast transactions, fast analysis, fast decisions — especially when something’s wrong.

Additional Benefits:

Yes, you still need AML officers — and BitOK will gladly train them.

In the 21st century, financial systems and tools that build trust are evolving much faster than they did in Renaissance Italy. BitOK is part of this evolution. The sooner your business joins in, the better.

Just request a demo or email us at info@bitok.org — and see the power of our solutions for yourself.