Chainsett — Crypto Payment Integration, KYT Compliance & Accounting

Compliance Infrastructure and Regulatory Disclosure

Last Updated: June 27, 2026 Document Status: Active

Important Notice

This Compliance Infrastructure and Regulatory Disclosure (the "Disclosure") sets out the regulatory status, scope of services, and limitations of liability of Chainsett SIA ("Chainsett," "we," "us," or "our"), a company registered in the Republic of Latvia, with its registered office in Riga, Latvia.

This Disclosure must be read in conjunction with our Terms of Service and Privacy Policy. By engaging with Chainsett or using any of our services, you acknowledge that you have read, understood, and agree to the terms set out in this Disclosure.

1. Regulatory Status and Classification

1.1 What Chainsett Is

Chainsett is a technology infrastructure and consulting company that provides stablecoin payment integration services, compliance monitoring infrastructure, and crypto accounting integration for business-to-business ("B2B") clients.

Chainsett operates as a technology services provider and compliance infrastructure consultant. Our services are designed to assist our clients in establishing and maintaining compliant digital asset payment acceptance capabilities through the configuration, integration, and management of third-party tools and platforms.

1.2 What Chainsett Is Not

For the avoidance of doubt, Chainsett:

(a) is not a bank, credit institution, or deposit-taking institution;

(b) is not a payment institution or electronic money institution as defined under Directive (EU) 2015/2366 (the Payment Services Directive, "PSD2") or any successor legislation;

(c) is not an electronic money issuer as defined under Directive 2009/110/EC (the Electronic Money Directive, "EMD2") or any successor legislation;

(d) is not a crypto-asset service provider ("CASP") as defined under Regulation (EU) 2023/1114 (the Markets in Crypto-Assets Regulation, "MiCA");

(e) is not a virtual asset service provider ("VASP") as defined under the Financial Action Task Force ("FATF") Recommendations or any national legislation implementing the same;

(f) does not hold, manage, custody, or control client funds, digital assets, fiat currencies, or any financial instruments at any time;

(g) does not issue, redeem, exchange, or trade any crypto-assets, electronic money, stablecoins, tokens, or digital currencies;

(h) does not provide investment advice, portfolio management, or any form of financial advisory services;

(i) does not hold any financial services licence, payment institution licence, electronic money licence, or CASP authorisation in any jurisdiction.

1.3 Nature of Services

Chainsett provides technology consulting and infrastructure integration services exclusively. All regulated financial activities associated with or arising from the use of our services — including, without limitation, payment processing, fund custody, currency conversion, transaction settlement, and fiat disbursement — are performed solely by independent, third-party licensed service providers (each a "Licensed Provider") under their own regulatory authorisations and compliance obligations.

Chainsett acts as an intermediary that connects, configures, and manages the integration of these Licensed Providers on behalf of its clients. Chainsett does not at any time assume the regulatory obligations, licensing requirements, or compliance responsibilities of any Licensed Provider.

2. Know Your Customer (KYC) and Know Your Business (KYB)

2.1 Chainsett's KYC/KYB Position

Chainsett does not perform Know Your Customer ("KYC") or Know Your Business ("KYB") verification procedures as a regulated activity. Chainsett is not authorised, licensed, or obligated to conduct identity verification, customer due diligence ("CDD"), enhanced due diligence ("EDD"), or beneficial ownership screening under any applicable anti-money laundering legislation, including but not limited to:

(a) Directive (EU) 2015/849 (the Fourth Anti-Money Laundering Directive, "AMLD4") and its amendments;

(b) Regulation (EU) 2024/1624 (the Anti-Money Laundering Regulation, "AMLR");

(c) the Latvian Law on the Prevention of Money Laundering, Terrorism and Proliferation Financing (Noziedzīgi iegūtu līdzekļu legalizācijas un terorisma un proliferācijas finansēšanas novēršanas likums);

(d) any other national legislation implementing EU AML directives or FATF Recommendations.

2.2 Client Onboarding Verification

Chainsett conducts a commercial onboarding process for the purposes of verifying the identity and legitimacy of prospective clients before entering into a service agreement. This process is performed solely for Chainsett's own commercial and risk management purposes and does not constitute a regulated KYC or KYB procedure.

As part of this commercial onboarding, Chainsett may request the following information and documentation from prospective clients:

(a) Company registration certificate or certificate of incorporation;

(b) Proof of registered business address;

(d) Copies of government-issued identification documents of directors and beneficial owners;

(e) Proof of address for directors and beneficial owners;

(f) Company organisational structure chart, where applicable;

(g) Description of business activity, including jurisdictions of operation;

(h) Any applicable licences, authorisations, or regulatory approvals held by the client;

(i) Source of funds declaration, where applicable;

(j) Any additional information reasonably required by Chainsett to assess the commercial suitability of the prospective client.

This information is collected, processed, and stored in accordance with our Privacy Policy and Regulation (EU) 2016/679 (the General Data Protection Regulation, "GDPR").

2.3 Third-Party KYC/KYB Providers

Where identity verification is required as part of a client's onboarding or ongoing compliance obligations, such verification is performed exclusively by independent, third-party identity verification providers (each a "Verification Provider"), which may include, without limitation, Veriff, Sumsub, or Onfido.

Verification Providers operate under their own regulatory authorisations, terms of service, and privacy policies. Chainsett does not control, direct, or assume responsibility for the identity verification processes, results, or data handling practices of any Verification Provider.

2.4 Client Responsibility for KYC/KYB

Each client is solely responsible for ensuring that it meets all KYC, KYB, CDD, EDD, and beneficial ownership screening obligations applicable to its own business activities under the laws and regulations of its jurisdiction(s) of operation. Chainsett does not verify, certify, or warrant that any client is in compliance with its own regulatory obligations.

3. Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF)

3.1 Chainsett's AML/CTF Position

Chainsett does not act as a reporting entity, obligated entity, or designated non-financial business or profession under any AML/CTF legislation. Chainsett is not obligated to file suspicious activity reports ("SARs"), suspicious transaction reports ("STRs"), or any other regulatory reports with any financial intelligence unit ("FIU") or national competent authority.

3.2 KYT Monitoring Infrastructure

Chainsett provides Know Your Transaction ("KYT") monitoring infrastructure as a technology service. This service involves the configuration, integration, and management of third-party transaction monitoring platforms (each a "KYT Provider"), which may include, without limitation, Chainalysis, TRM Labs, Scorechain, Elliptic, or AMLYZE.

The KYT monitoring infrastructure configured by Chainsett may include:

(a) Real-time transaction risk scoring;

(b) Sanctions screening against global sanctions lists, including but not limited to OFAC SDN, EU Consolidated List, UN Security Council Sanctions, and HM Treasury Sanctions List;

(d) Identification of transactions involving high-risk wallet addresses, darknet markets, mixing services, or other indicators of suspicious activity;

(e) Generation of compliance reports for client review and record-keeping.

3.3 Limitation of Liability for KYT Monitoring

KYT monitoring is provided as a technology infrastructure service. Chainsett does not guarantee the accuracy, completeness, or reliability of any risk score, sanctions screening result, or flagged transaction report generated by any KYT Provider. The outputs of KYT monitoring tools are informational and advisory in nature and do not constitute legal, regulatory, or compliance advice.

Each client is solely responsible for:

(a) reviewing and acting upon flagged transactions and compliance alerts;

(b) making its own determination as to whether a transaction or counterparty is suspicious or non-compliant;

(d) maintaining its own AML/CTF policies, procedures, and controls in compliance with applicable law.

Chainsett does not make compliance decisions on behalf of its clients. Chainsett's role is to provide the technology infrastructure that enables clients to monitor, assess, and document their own compliance activities.

4. Payment Processing and Fund Flows

4.1 Payment Infrastructure

Chainsett integrates third-party payment gateways and processing platforms (each a "Payment Provider") into its clients' business infrastructure. Payment Providers may include, without limitation, NOWPayments, Coinbase Commerce, CoinGate, or Circle.

All payment acceptance, processing, conversion, settlement, and disbursement functions are performed exclusively by the applicable Payment Provider under its own regulatory authorisations, terms of service, and compliance obligations.

4.2 No Custody or Control of Funds

Chainsett does not at any time:

(a) receive, hold, custody, or control any client funds, whether in fiat currency or digital assets;

(b) operate or manage any wallet, account, or payment address on behalf of any client;

(d) convert or exchange any digital asset into any fiat currency or vice versa;

(e) act as an intermediary, escrow, or agent in respect of any payment flow.

All wallets used by clients in connection with Chainsett's services are self-custody wallets created, controlled, and managed exclusively by the client. Chainsett may assist in the configuration and setup of such wallets as a consulting service, but does not retain access to, or control over, any private keys, seed phrases, or wallet credentials.

4.3 Client Responsibility for Payment Compliance

Each client is solely responsible for ensuring that its acceptance and processing of digital asset payments complies with all applicable laws and regulations, including but not limited to:

(a) PSD2 and national payment services legislation;

(b) MiCA and national crypto-asset legislation;

(d) Tax reporting and accounting obligations;

(e) Sanctions compliance;

(f) Any sector-specific licensing requirements applicable to the client's business activity.

Chainsett does not provide legal, regulatory, or tax advice. Clients are strongly encouraged to obtain independent legal counsel regarding their regulatory obligations before and during the use of Chainsett's services.

5. Crypto Accounting and Tax Reporting

5.1 Accounting Integration

Chainsett integrates third-party crypto accounting platforms (each an "Accounting Provider") into its clients' business infrastructure. Accounting Providers may include, without limitation, Koinly, CoinTracker, or Cryptio.

Accounting integration services include:

(a) Configuration of automated transaction synchronisation between payment wallets and the Accounting Provider;

(b) Setup of real-time conversion rate recording;

(d) Generation of exportable reports in CSV, PDF, or other formats.

5.2 No Tax Advice

Chainsett does not provide tax advice, tax planning, tax preparation, or tax filing services. All outputs generated through integrated Accounting Providers — including, without limitation, transaction reports, capital gains calculations, portfolio summaries, and tax summaries — are provided for informational purposes only and do not constitute professional tax advice.

Each client is solely responsible for:

(a) the accuracy and completeness of its tax filings;

(b) the correct classification and treatment of digital asset transactions under applicable tax law;

(d) maintaining adequate records and documentation as required by applicable tax authorities.

Chainsett does not verify, audit, or guarantee the accuracy of any data, report, or calculation produced by any Accounting Provider.

6. MiCA Compliance and Regulatory Positioning

6.1 MiCA Status

Chainsett is not a crypto-asset service provider ("CASP") as defined under MiCA and does not perform any of the crypto-asset services enumerated in Article 3(1)(16) of MiCA, including but not limited to:

(a) custody and administration of crypto-assets on behalf of clients;

(b) operation of a trading platform for crypto-assets;

(d) execution of orders for crypto-assets on behalf of clients;

(e) placing of crypto-assets;

(f) reception and transmission of orders for crypto-assets on behalf of clients;

(g) providing advice on crypto-assets;

(h) providing portfolio management on crypto-assets;

(i) providing transfer services for crypto-assets on behalf of clients.

6.2 MiCA-Aligned Infrastructure

While Chainsett itself is not subject to MiCA authorisation requirements, Chainsett's infrastructure and consulting services are designed to assist clients in establishing payment acceptance capabilities that are aligned with MiCA's compliance framework. This includes:

(a) integration of MiCA-compliant stablecoins (such as USDC and EURC issued by Circle Internet Financial Europe SAS, an authorised electronic money institution under MiCA);

(b) configuration of KYT monitoring tools that satisfy the transaction monitoring obligations applicable to CASPs and their clients;

(d) provision of compliance documentation and audit trail capabilities.

Chainsett does not warrant or guarantee that the use of its services will result in full compliance with MiCA or any other applicable regulation. Clients are solely responsible for ensuring their own compliance and should seek independent legal advice regarding their regulatory obligations.

7. Data Protection and Privacy

7.1 GDPR Compliance

Chainsett processes personal data in accordance with Regulation (EU) 2016/679 (GDPR) and the Latvian Personal Data Processing Law. Full details of our data processing activities, legal bases, retention periods, and data subject rights are set out in our Privacy Policy.

7.2 Data Sharing with Third Parties

In the course of providing its services, Chainsett may share client information with the following categories of third-party service providers:

(a) KYT Providers — for the purpose of transaction monitoring and risk assessment;

(b) Verification Providers — for the purpose of identity verification during onboarding;

(d) Accounting Providers — for the purpose of accounting integration and transaction reporting.

All data sharing is conducted in accordance with applicable data protection legislation, on the basis of appropriate legal grounds, and subject to contractual safeguards including, where applicable, standard contractual clauses for international data transfers.

7.3 Biometric Data

If identity verification conducted by a Verification Provider requires the processing of biometric data (such as facial images derived from selfie photographs or videos), such data:

(a) will be processed exclusively by the Verification Provider, not by Chainsett;

(b) will be processed solely for identity verification purposes;

(c) will be subject to the Verification Provider's own terms of service, privacy policy, and data protection obligations;

(d) will not be stored or retained by Chainsett unless required by law.

8. Limitation of Liability

8.1 General Limitation

To the maximum extent permitted by applicable law, Chainsett shall not be liable for any direct, indirect, incidental, special, consequential, or exemplary damages arising out of or in connection with:

(a) the acts, omissions, errors, or failures of any Licensed Provider, Payment Provider, KYT Provider, Verification Provider, or Accounting Provider;

(b) any regulatory action, penalty, fine, sanction, or enforcement proceeding brought against a client by any national competent authority, FIU, or regulatory body;

(c) any loss, theft, compromise, or unauthorised access to digital assets, private keys, seed phrases, or wallet credentials held or controlled by the client;

(d) any inaccuracy, incompleteness, or unreliability of data, reports, risk scores, or outputs generated by any third-party tool or platform integrated by Chainsett;

(e) any failure by the client to comply with its own regulatory obligations, including but not limited to KYC, KYB, AML, CTF, tax reporting, and licensing requirements;

(f) any interruption, suspension, or termination of services by any third-party provider;

(g) any fluctuation in the value of digital assets, exchange rates, or market conditions;

(h) any decision made by the client in reliance on information, data, or outputs provided through Chainsett's services.

8.2 No Warranty

Chainsett provides its services on an "as is" and "as available" basis. Chainsett makes no representations or warranties, express or implied, regarding:

(a) the suitability, accuracy, reliability, or completeness of its services;

(b) the regulatory compliance of any third-party provider;

(d) the achievement of any particular compliance, financial, or operational outcome.

9. Client Representations and Warranties

By engaging with Chainsett, each client represents and warrants that:

(a) it is a duly registered and validly existing legal entity in its jurisdiction of incorporation;

(b) it has full corporate authority to enter into a service agreement with Chainsett and to perform its obligations thereunder;

(c) it has obtained, or will obtain prior to commencing payment acceptance activities, all licences, authorisations, registrations, and approvals required under applicable law for the conduct of its business;

(d) it has implemented, or will implement prior to commencing payment acceptance activities, adequate AML/CTF policies, procedures, and controls as required by applicable law;

(e) it will not use Chainsett's services for any purpose that is illegal, fraudulent, or in violation of any applicable law, regulation, or sanctions regime;

(f) all information provided to Chainsett during onboarding and throughout the service relationship is accurate, complete, and not misleading;

(g) it will promptly notify Chainsett of any material change in its regulatory status, business activity, corporate structure, or beneficial ownership.

10. Governing Law and Jurisdiction

This Disclosure and any disputes arising out of or in connection with it shall be governed by and construed in accordance with the laws of the Republic of Latvia, without regard to its conflict of laws provisions.

Any dispute, controversy, or claim arising out of or in connection with this Disclosure, or the breach, termination, or validity thereof, shall be submitted to the exclusive jurisdiction of the courts of the Republic of Latvia.

11. Amendments

Chainsett reserves the right to amend, update, or replace this Disclosure at any time. Any material amendments will be published on our website and, where practicable, communicated to affected clients in advance.

The version of this Disclosure published on chainsett.com at the time of any relevant event or dispute shall be the version that applies.

12. Contact

For questions regarding this Disclosure or Chainsett's regulatory status, please contact:

Chainsett SIA Riga, Latvia Email: info@chainsett.com Website: chainsett.com