When it comes to accepting Bitcoin and other cryptocurrency payments, merchants need to be 100% confident that all transactions are safe. It’s a fact that cryptocurrency payments offer users a safer way to pay for goods and services by the very nature of blockchain technology itself, but fraud is omnipresent on the internet so there is always the potential for hacking or other illicit activities such as money laundering.
Therefore, any reputable payments provider needs to have water-tight measures in place to ensure the safety and security of their clients and all transactions that pass through their system.
For this reason, it is very important for a business to monitor their transactions by way of KYT (Know Your Transaction) and AML (Anti-Money Laundering) checks.
KYT is the cryptocurrency world’s equivalent to the Know Your Customer regulation we are familiar with in traditional banking. KYT looks at various aspects relating to each transaction in order to provide a detailed digital picture, for example, data on the type of device, time, amount, counterparty, language and more in real-time. Artificial Intelligence then uses this information to match the data with customer profiles to give an accurate and up-to-date risk view for each transaction.
Businesses also need to be aware of the potential for money laundering and should have in place AML (Anti-Money Laundering) procedures. Money laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers