Screening at the Point of Entry, and What a Deposit Address Keeps Out

Your balance shouldn't inherit the risk profile of every wallet that pays you. On a public chain it usually does. Incoming transfers land in the same wallet you use for everything else, so one deposit from a high-risk source ends up sitting next to the funds you actually operate with.

Hinkal moves the check to the point of entry. Every transfer that arrives at your Hinkal deposit address is screened against Chainalysis before it can reach your private balance. Eligible funds move in automatically. Anything high risk stays outside, where you can return it or send it somewhere else.

The check is called KYT, and this is where it shows up when you use Hinkal.‍

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Know Your Transaction

KYT stands for Know Your Transaction. It's a risk check on money rather than on people: it looks at an address and the funds behind it, and scores their exposure to sanctioned entities, stolen funds, and scams, counting both what came straight from those places and what passed through something else first. 

Hinkal can run a serious compliance control and still perform no KYC and collect no personal information. With KYT, the money gets checked. You don't.

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What happens when your deposit address receives money

Every transfer that lands on your deposit address is checked before it can become part of your private balance.

If it passes, the funds move into your private balance automatically, ready to hold, send, or swap. Nothing for you to approve, nothing for the sender to do.

If it comes back high risk, it never gets past the deposit address. It stays there as public funds, at an address that holds nothing else of yours, and you can send it straight back to the sender or move it somewhere else.

That gives you a clean split between what gets sent to you and what enters your operating balance. There's no manual screening step to remember, and no receiving everything into a public wallet first to sort out afterwards. A client, a marketplace, or an exchange withdrawal can pay you without you inheriting whatever their money has been near.

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When it actually decides something

When someone you don't know pays you

The largest stablecoin issuers can freeze an address in the token contract itself, and a frozen address can no longer send or receive that token at all. It isn't rare either. On-chain freeze records show roughly 370 addresses and $514M of one stablecoin frozen in a single month this spring, and more than $4.2B since 2023. Share a deposit address instead of your wallet and the payment arrives at an address with nothing else in it. It gets checked there, and if it fails you send it back. Your wallet and your private balance stay out of the process. 

You move money in and out of an exchange

You can paste your deposit address into the withdrawal form and withdraw as usual. The exchange treats it as an ordinary withdrawal to an address. The funds land on the deposit address, get checked there, and only then move into your private balance. You skip the old routine of withdrawing to a public wallet and moving the funds in yourself afterwards, which is two transactions and an address left holding a record of both.

A business collecting payments

You can put a deposit address on the invoice, or hand it to a marketplace or payment provider as the payout destination, and every incoming payment is screened before it joins the company balance. The company balance is the one that pays salaries and suppliers, so a bad payment reaching it is mixed in with the funds you are about to send out. Checked at the address, it doesn't get that far, and you can return it to the customer who sent it.

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Why checking first matters

Screening isn't a yes or no question across this space, it's a question of when. The protocols that screen at all tend to check after funds are already inside, during a holding window or on the way out. Mixers don't check at all, which is why compliance teams still treat mixer exposure as a risk indicator.

Hinkal checks at the entrance, and that decides how everything downstream feels. Nothing questionable ever sits in the balance you spend from. There's no waiting period between depositing and using your money.

Read how compliance works at Hinkal: the docs and get a deposit address at pay.hinkal.io for safe and private payments.

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Frequently Asked Questions

What is a Hinkal deposit address?

It's an address Hinkal gives you that's tied to your private balance, and it works like any other wallet address for whoever is paying you. Incoming transfers are screened there before anything reaches your balance, so the sender needs no Hinkal account and you get no manual screening step.

Does Hinkal require KYC?

No. Hinkal performs no KYC and collects no personal information. Deposits are screened against Chainalysis, which is a check on the funds rather than on the person holding them.

What happens if a payment I receive gets flagged?

It doesn't enter your private balance. It stays at your deposit address as public balance, and you can send it back to the sender or move it to another wallet.

Does screening slow anything down?

No waiting period sits between a payment arriving and it being usable. Funds that pass move into your private balance as they arrive, and paying from that balance afterwards works like any other payment.

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