---
title: "Transaction Monitoring System Setup (Chainalysis, TRM Labs)"
url: "https://legal.ge/en/service/crypto-blockchain-services-en/transaction-monitoring-system-setup-chainalysis-trm-labs-en"
field: "Crypto & Blockchain Services"
description: "Professional crypto transaction monitoring system (KYT) setup and API integration for VASPs in Georgia. Find compliance IT experts on Legal.ge."
reviewed: "2026-04-08"
updated: "2026-10-27"
publisher: "legal.ge"
---

# Transaction Monitoring System Setup (Chainalysis, TRM Labs)

> Source: legal.ge, https://legal.ge/en/service/crypto-blockchain-services-en/transaction-monitoring-system-setup-chainalysis-trm-labs-en

## Transaction Monitoring System Setup (Chainalysis, TRM Labs) for VASPs in Georgia

In the blockchain ecosystem, where transactions are executed instantaneously and irreversibly, accepting "dirty" (illicitly obtained) cryptocurrency poses a catastrophic financial and reputational risk to any company. Virtual Asset Service Providers (VASPs), crypto exchanges, and OTC desks are legally obligated to monitor and evaluate the risk level of every single incoming and outgoing transaction in real-time—a process known as KYT (Know Your Transaction). Performing this analysis manually using basic block explorers is technically impossible and legally insufficient. Transaction Monitoring System Setup is a highly complex IT and compliance service that ensures the seamless integration of industry-leading blockchain analytics platforms (such as Chainalysis, TRM Labs, or Elliptic) into a client's business architecture. Under the regulatory framework enforced by the National Bank of Georgia (NBG), operating without an automated on-chain monitoring system guarantees a denied VASP registration. These advanced systems automatically screen wallet addresses, assign dynamic Risk Scores based on sophisticated heuristics, and proactively block transactions connected to Darknet markets, sanctioned entities, or crypto mixers, thereby shielding the company from inadvertent participation in money laundering networks.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/crypto-blockchain-services-en/transaction-monitoring-system-setup-chainalysis-trm-labs-en

### What is the difference between KYT and KYC?

KYC (Know Your Customer) verifies the identity of the person (using an ID or passport) when they open an account. KYT (Know Your Transaction) continuously monitors the actual movement of funds on the blockchain in real-time, analyzing where the crypto came from or where it is going to ensure it isn't linked to illicit activity.

### Can I just use Etherscan instead of paying for Chainalysis?

No. Standard block explorers like Etherscan only show the flow of tokens between alphanumeric addresses. They do not tell you \*who\* owns those addresses. Professional tools like Chainalysis provide "Attribution"—identifying if an address belongs to a sanctioned entity, a darknet market, or a legitimate exchange. Regulators strictly require this attribution capability.

### What happens when the system flags a transaction as high risk?

The system automatically halts the transaction via API before it clears. An alert is sent to the company's AML Officer, who conducts a manual investigation into the Source of Funds. If the illicit origin is confirmed, the VASP is legally required to freeze the assets and file a Suspicious Activity Report (SAR) with the authorities.

### How much does a Chainalysis or TRM Labs license cost?

Pricing varies significantly based on the chosen provider, the specific modules required (screening vs. full investigation), and the anticipated annual transaction volume (API calls). For smaller VASPs, annual licenses typically represent a significant recurring cost. A consultant will help negotiate the most cost-effective tier for your business.