BlockSec Launches Phalcon Compliance 3.1 for Instant KYT

BlockSec launches Phalcon Compliance 3.1 for instant KYT screening of cryptoassets and FATF-aligned compliance for exchanges and financial institutions. The new release targets Web3 participants and digital-asset market firms that need to quickly assess on-chain risks without heavy onboarding and long contracts. The platform promises to start screening an address or transaction immediately, with no upfront payment, demo cycle, or mandatory account registration before the first scan. As a result, exchanges, OTC desks, cross-border payment providers, and compliance teams gain a tool that adapts to the pace of their operations instead of forcing them to slow down to match the product.

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Search-First Approach to KYT Instead of Heavy Onboarding

The key change in Phalcon Compliance 3.1 is a shift to a search-first architecture. Instead of registering, going through KYC/KYB, and sitting through product demos first, users can start with a basic action: enter a wallet address or transaction hash on the landing page and immediately get results from an initial KYT screening. This lowers the barrier to entry for teams that need to check a new counterparty or suspicious flow quickly, and it saves time in scenarios where they need to react within minutes, not days.

The platform also adds a unified Home Page that brings multi-chain search, scan history, risk-trend insights, and a set of sample datasets into a single interface. As demo samples, BlockSec uses publicly documented cases such as a Canadian alleged drug trafficker and former Olympic snowboarder Ryan James Wedding. This format lets teams test the risk model on real cases before they start uploading their own data or integrating the API.

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Lite Scan: Fast First-Pass Risk Analysis Without a Full Subscription

Phalcon Compliance 3.1 introduces a Lite Scan mode designed for situations where a team needs a quick first-pass analysis but is not ready to buy a full subscription right away. A user enters an address or transaction hash and receives core risk screening results, meaning access to key risk indicators without the full deep-dive report. These indicators include risk labels for sanctions exposure, involvement in scams, human trafficking, or mixer-related activity, as well as basic financial metrics and exposure to high-risk entities.

In practice, Lite Scan fills the gap between public block explorers and full-scale analytics platforms. Instead of an "all or nothing" choice, teams can quickly exclude obviously toxic flows and make initial decisions about a counterparty, while reserving full investigations for those cases where they can justify the cost and regulatory pressure.

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Credit Model and Payments: Adapting to Volatile Compliance Demand

Another change in Phalcon Compliance 3.1 relates to monetization. BlockSec is moving away from rigid subscription-tier models toward a more flexible credit-based scheme. Organizations with irregular KYT workloads can buy exactly the volume of screening credits they need for a given period instead of overpaying for unused limits in quiet months. This is especially important for early-stage projects, independent specialists, and small teams where every extra subscription turns into fixed OPEX.

At the same time, the platform expands its payment options. Domestic users gain access to WeChat Pay, and international clients can use Cash App as an additional method. Traditional options such as card payments and cryptocurrency payments remain available. Taken together, these changes reduce geographic and operational barriers to specialized blockchain compliance infrastructure and bring it closer to the logic of SaaS tools for product teams.

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Address Coverage, MetaSleuth, and Alignment with Global Requirements

On the regulatory side, Phalcon Compliance 3.1 focuses on supporting FATF-aligned KYT requirements and a broad range of regional rules. The platform relies on a database of more than 400 million labeled blockchain addresses and supports screening for major networks, including Ethereum, Tron, BSC, Polygon, Base, and Optimism. Millisecond-level API performance allows high-frequency real-time screening, which is critical for exchanges and providers that handle large volumes of small transactions.

Integration with MetaSleuth, BlockSec's own fund-flow tracking and investigation product, adds visual analysis of fund movements and workflows for complex investigations. Phalcon Compliance 3.1 also supports one-click generation of Suspicious Transaction Reports (STRs), aligning reporting with international standards and regulatory expectations. According to BlockSec, more than 500 clients worldwide already use the combination of Phalcon Compliance and MetaSleuth, from major crypto exchanges such as Coinbase and Bybit to government agencies and regulators, including the United Nations, the FBI, and the Securities and Futures Commission (SFC). This shows that the product has moved beyond a niche solution for Web3 startups and has become part of the infrastructure for mature institutional players.

To accelerate the diffusion of new KYT practices across the industry, BlockSec is also launching a referral program around Phalcon Compliance 3.1. Participants receive three free scanning credits for every new user they bring in, plus up to 20 percent cashback on referred clients’ payments. They can withdraw cashback once it reaches 100 USD, with a lifetime cap of 10,000 USD per participant. This mechanism lowers the cost of access for smaller teams and turns existing customers into a channel for the organic spread of AML and KYT practices.

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Conclusion

From a market perspective, programs like this show how compliance tools are moving from "bespoke solutions for banks" into a broader layer of B2B infrastructure around Web3 products and payment services. Where serious KYT stacks used to be available mainly to large centralized players, infrastructure providers like BlockSec are now trying to make targeted risk screening and basic analytics as accessible as APIs for sending transactions or working with wallets. This is another step toward making on-chain risk management and STR preparation a standard expectation for any service that works with digital assets, rather than an exclusive competence of the banking sector. Get more insights from our guides for beginners and professionals, and stay tuned for the latest updates and opportunities in the new economy, crypto industry, and blockchain developments!