Know Your Wallet (KYW)
Definition
Know Your Wallet (KYW) is a compliance process that assesses a cryptocurrency wallet rather than only its owner. It combines identity verification (KYC), on-chain transaction screening (KYT/AML), and cryptographic proof of wallet ownership into a single assessment, expressed in CryptoPass as a KYW score from 0 to 100.
What KYW adds over KYC
Traditional KYC answers "who is this person?" but says nothing about a specific wallet. A compliance reviewer looking at a crypto transfer needs two more answers: is this wallet actually controlled by the customer, and has its history touched sanctioned or illicit counterparties? KYW packages those three answers (identity, ownership, and on-chain history) into one verifiable result.
Components of a KYW check
- Identity: the holder is verified (KYC), so the assessment is tied to a real person.
- Ownership: a Satoshi Test or WalletConnect session proves control of the wallet's keys.
- Screening: the wallet's transaction history is screened for sanctions exposure, illicit counterparties, and risk patterns (KYT/AML).
- Result: a 0-100 KYW score and a PDF certificate with a blockchain-verified hash that third parties can check independently.
FAQ
Is KYW an official regulatory requirement?
No regulation names "KYW" as such. It is a methodology, filed for patent by Cibex AG (US 19/115,736 and EP applications pending; WO 2024/074865), designed to align with what FATF guidance and EU rules effectively require: knowing the customer, verifying wallet ownership, and screening transaction history.
What is a good KYW score?
The score expresses risk on a 0-100 scale based on transaction history, counterparty risk, sanctions exposure, and ownership verification. What counts as acceptable is decided by the institution reviewing the wallet, not by the score itself.
Who uses KYW checks?
Individual holders use them to document their wallets for banks, exchanges, and tax authorities; exchanges and platforms use the same checks through an API to screen customer wallets.
Free basic check · no card, no KYC upfront