Legal & Regulatory Considerations

Compliance and AML Standards

BeatSwap implements comprehensive compliance controls designed to meet KYC and AML expectations across major jurisdictions. All participants undergo identity verification prior to accessing core platform features. Screening is performed against internationally recognized sanctions lists, and participation is restricted for users in sanctioned or otherwise prohibited jurisdictions. Customer information collected for compliance is stored securely and retained only for the period required by applicable law. Transactions are monitored for suspicious activity and may be paused or reported to competent authorities as required. Counterparty, wallet, and IP address checks are used to mitigate illicit finance risk and to support ongoing sanctions compliance.

Data Protection and Privacy

BeatSwap processes personal data solely for compliance, security, and platform functionality. Credentials and KYC records are maintained on a permissioned environment with strict role-based access controls. Technical safeguards include encryption in transit and at rest, logical segregation of data, and auditable access logs. Users may request access, correction, or deletion of their personal data subject to legal retention requirements and technical feasibility. Cross-border transfers follow applicable data protection rules, and data is retained only for the minimum period necessary. Incident response procedures are established to investigate, contain, and report security events in a timely manner.

Risk Factors

Participation in the BeatSwap ecosystem involves risks that could result in partial or total loss of value.

Regulatory risk. Laws and regulations applicable to digital assets, IP licensing, and tokenized rights continue to evolve and may restrict or prohibit certain activities or impose new compliance obligations.

Market and liquidity risk. Digital assets can be volatile, and liquidity may be limited or uneven across markets, potentially impacting price discovery and exit opportunities.

Technology risk. Smart contracts, oracles, and blockchain networks may contain defects or experience downtime, network congestion, or forks that affect settlement, rewards, or ownership records.

Operational and counterparty risk. The protocol depends on external partners and platforms for verified usage data; failures or disputes may impair rewards or distributions.

Data and measurement risk. Inaccurate, delayed, or manipulated usage data could affect royalty calculations, snapshots, or incentive allocations.

Security and cyber risk. Compromise of keys, wallets, or infrastructure could lead to loss of assets or data.

Intellectual property and licensing risk. Rights validity, territorial scope, and enforcement may vary by jurisdiction and may be subject to third-party claims or contractual limitations.

Tax risk. Tax treatment of tokens and rewards differs by jurisdiction and may change without notice.

Jurisdiction and Governing Law

BeatSwap is incorporated in the British Virgin Islands. The whitepaper, protocol documentation, and any non-contractual obligations are governed by the laws of the British Virgin Islands. Given the global nature of token markets and the intention to list on international exchanges, activities related to $BTX and RWA may be subject to additional regulatory regimes, including the application of United States federal securities laws and oversight by the U.S. Securities and Exchange Commission where applicable. Participation must comply with local laws and is not permitted in jurisdictions where such participation is restricted or prohibited.