BlockSec Unveils Instant KYT Checks to Spur Global Crypto Compliance Adoption

BlockSec has launched Phalcon Compliance 3.1, an updated version of its blockchain compliance platform aimed at addressing the rapidly evolving regulatory landscape in the digital asset space according to the release. The release introduces a search-first workflow that allows users to conduct Know Your Transaction (KYT) screenings instantly without the need for registration or pre-sales processes. This change is designed to make compliance tools more accessible for exchanges, cross-border payment providers, and Web3 participants who require real-time risk intelligence.

Phalcon Compliance 3.1 features a redesigned compliance architecture that enables users to initiate KYT checks directly from the landing page by entering a wallet address or transaction hash. This eliminates traditional delays caused by account registration and onboarding, which are often time-sensitive in fast-moving blockchain environments. The update also includes a unified home page that consolidates multi-chain search, risk insights and screening history into a single interface.

Lite Scan Mode has been added to Phalcon Compliance 3.1 to provide instant risk assessments without requiring a full subscription. This feature is particularly useful for scenarios like exchange support teams validating a withdrawal destination or individuals checking a recipient address before sending funds. The results include risk indicators such as sanctions exposure, scam involvement, and mixer activity, allowing for rapid decision-making in high-stakes situations.

BlockSec also updated the platform's credit system to offer greater flexibility for users with fluctuating compliance needs. Instead of fixed subscription tiers, users can now purchase only the number of screening credits they require at any given time. This model is intended to reduce unused capacity during low-activity periods while still allowing for scalability during peak times. The company has also expanded its payment options to include WeChat Pay for domestic users and Cash App for international users, in addition to existing options like credit cards and cryptocurrency according to the platform update.

The new version of Phalcon Compliance supports compliance with Financial Action Task Force (FATF)-aligned KYT requirements and a wide range of regional regulations. The platform now includes a database of over 400 million labeled blockchain addresses and supports screening on major networks such as Ethereum, Tron, and BSC. Additionally, it integrates with BlockSec's MetaSleuth platform to enable visual fund-flow analysis and investigative use cases.

BlockSec has also introduced a referral program to promote wider adoption of its compliance tools. Participants can earn scanning credits and up to 20% cashback on payments made by referred users. The initiative is aimed at reducing the cost of access to AML tools for early-stage teams, independent practitioners, and smaller organizations. Cashback earnings become withdrawable once they reach $100, with a lifetime cap of $10,000 per participant according to the company announcement.

Phalcon Compliance 3.1 is now available for all users, with the referral program running concurrently to encourage broader adoption of self-service AML tools according to the official release. The update represents a significant step in making blockchain compliance more efficient and scalable for institutions and individuals alike.

Market Implications and Adoption

The release of Phalcon Compliance 3.1 comes at a time when the digital asset industry is increasingly under regulatory scrutiny. With institutions such as Coinbase and Bybit already using the platform, the updated version aims to scale its reach across more jurisdictions according to industry analysis. The move to a search-first model aligns with the growing demand for real-time compliance tools in fast-paced blockchain environments, where delays can lead to operational risks and compliance failures.

Phalcon Compliance 3.1

has introduced a new era of accessibility in compliance technology. The integration of Lite Scan Mode is particularly relevant for smaller teams and individuals who need immediate risk assessments without committing to a full platform subscription. This feature reduces the friction associated with compliance checks and lowers the barrier to entry for users who may otherwise be deterred by the complexity of traditional compliance systems. By focusing on core risk indicators, Lite Scan enables faster decision-making in scenarios where a full investigation is not immediately necessary according to the product documentation.

The updated credit-based usage model and expanded payment options also reflect BlockSec's strategy to accommodate users from different regions and market structures. By allowing users to purchase only the number of screening credits they need, the platform supports cost-effective compliance workflows for institutions with variable KYT screening requirements. This is especially beneficial for smaller organizations and startups that may lack the budget for long-term subscription commitments according to platform analysts.

The referral program further supports ecosystem adoption by incentivizing users to share compliance tools with others. With rewards in the form of scanning credits and cashback, the initiative encourages broader use of Phalcon Compliance 3.1 across the Web3 and digital asset industries. This is expected to lower the overall cost of compliance for participants while also increasing the visibility of BlockSec's platform among new users according to market research.

Analyst Perspectives and Future Outlook

Analysts have noted that Phalcon Compliance 3.1 addresses a critical need in the digital asset industry—faster and more accessible compliance tools. As regulatory expectations continue to evolve, the ability to perform real-time KYT checks is becoming a competitive advantage for institutions seeking to operate across multiple jurisdictions. The search-first model and Lite Scan feature are seen as key innovations that could redefine how compliance teams approach risk assessment in the blockchain space according to industry experts.

Looking ahead, the success of Phalcon Compliance 3.1 will depend on its ability to maintain regulatory alignment and adapt to changing compliance standards. The platform's integration with MetaSleuth and its ability to generate Suspicious Transaction Reports (STRs) align with international regulatory requirements, which is a critical factor for institutions operating in compliance-sensitive environments. As more institutions adopt the platform, it could set a new standard for KYT screening in the digital asset industry according to financial analysts.

The referral program also has the potential to drive wider adoption of self-service AML tools, particularly among smaller participants who may have previously been excluded due to cost or complexity barriers. By offering rewards for referrals and making compliance tools more accessible, BlockSec is positioning itself as a key player in the growing blockchain compliance market according to market observers.

BlockSec reports that Phalcon Compliance and MetaSleuth are already used by over 500 clients globally, including cryptocurrency exchanges, public-sector organizations, and regulatory bodies. As the platform continues to expand its user base, it is expected to play an increasingly important role in supporting the compliance needs of the digital asset ecosystem according to official reports.