KAELUM Compliance Framework
As an Agentic Ai-Native, closed-loop commerce currency platform, KAELUM operates within a robust compliant framework designed to protect all participants Customers, Creators, and Merchants while fostering innovation.
KAELUM operates as a closed-loop commerce currency, meaning Units are issued, circulated, and redeemed exclusively within the KAELUM ecosystem. This model provides several key regulatory advantages:
Controlled Environment
Units cannot be transferred outside the platform, reducing money laundering and fraud risks.
Full Traceability
Every transaction is tracked and monitored within our secure system.
Value Stability
Fixed at £0.20 a Unit, so there is no speculative volatility.
Clear Purpose
Designed exclusively for commerce, not speculation or investment.
Your Protection
- Secure Transactions: All purchases are protected by advanced fraud detection and monitoring systems powered by K.A.T.E. Ai.
- Data Privacy: Your personal and financial data is encrypted and handled in compliance with GDPR and UK Data Protection Act 2018.
- Dispute Resolution: Fair and transparent processes for handling transaction disputes and refund requests.
- Fund Safety: KLM is spent only with KAELUM merchants at a fixed £0.20 a Unit. Customers cannot cash it out; Merchants and Creators can redeem KLM they earn through commerce.
Know Your Customer (KYC)
To comply with financial regulations, customers may be required to verify their identity for transactions exceeding certain thresholds. This protects both you and the platform from fraud and ensures compliance with anti-money laundering regulations.
Your Obligations
- Creator Verification: All creators must verify their identity and provide details of their content platforms and social media presence.
- Content Disclosure: All sponsored content, affiliate links, and paid promotions involving KAELUM must be clearly disclosed in accordance with ASA and CMA guidelines.
- Earnings Reporting: Creators must maintain accurate records of all commissions and earnings for tax purposes and comply with HMRC self-assessment requirements.
- Fair Representation: Claims about KAELUM discounts, rewards, and Unit mechanics must be accurate and not misleading to followers or audiences.
Influencer Marketing Compliance
Creators operating within the KAELUM ecosystem must comply with the UK Advertising Standards Authority (ASA) regulations, the Consumer Rights Act 2015, and the Competition and Markets Authority (CMA) guidance on social media endorsements. All commercial relationships must be transparently disclosed.
Your Obligations
- Merchant Verification: All merchants must complete verification to ensure legitimacy and protect customers from fraudulent sellers.
- Accurate Listings: Product descriptions, pricing, and availability must be accurate and comply with consumer protection laws.
- Transaction Reporting: Merchants must maintain accurate records of all transactions for tax and compliance purposes.
- Refund Compliance: Refund and return policies must comply with consumer rights legislation in applicable jurisdictions.
Anti-Fraud Measures
KAELUM employs Ai-powered transaction monitoring to detect suspicious patterns. Merchants with unusual refund rates, transaction velocities, or customer complaints may be subject to additional review to protect the ecosystem.
Enterprise Compliance
- API Access: Businesses integrating KAELUM must implement secure API practices and maintain compliance with data protection regulations.
- Volume Monitoring: High-volume merchants are subject to enhanced monitoring to ensure platform stability and fraud prevention.
- Compliance Reporting: Regular compliance reports may be required for businesses processing significant transaction volumes.
- Integration Standards: All platform integrations must meet KAELUM's security and compliance standards.
Your approval, every time
K.A.T.E. prepares purchases; you approve each one, with a passkey at or above your threshold. Fully autonomous buying is built but switched off platform-wide until the independent legal opinion is in place.
Authority you set once
Mandates set what K.A.T.E. may do, limits, merchants, categories and expiry. You can suspend or revoke them in one tap and pause all agent buying at any time.
Explained and auditable
Every agent purchase carries a fingerprinted decision record, and every purchase and refund is sealed in the OBSIGNIA ledger. Anything unclear or sensitive comes back to you.
Safety limits
Purchase-rate and daily spending limits, fraud checks and automatic mandate suspension apply to every agent purchase. Agents from other platforms are shown as verified only when registered with KAELUM.
Funded, not created
KLMback and the Quarterly Participation Reward are funded from 1.2% of each purchase, taken from KAELUM's platform fee. Nothing is minted to pay rewards.
No reward for holding
KAELUM does not offer any product that pays for holding, locking or deploying KLM. Rewards depend only on completed purchases and sales.
Spendable, not cashable
Rewards are credited as non-redeemable KLM: they can be spent with KAELUM merchants but not cashed out, including by Merchants and Creators.
Discretionary and capped
Rewards are discretionary, are not a return or interest, and are subject to caps, eligibility checks and fraud screening.
KAELUM is committed to operating within applicable regulatory frameworks:
Our regulatory position
KAELUM Technologies Ltd is not authorised by the Financial Conduct Authority as a payment institution or e-money institution. The company's considered view is that KAELUM's closed-loop design falls within the exclusion at regulation 3 of the UK Electronic Money Regulations 2011 and paragraph 2(k) of Part 2 of Schedule 1 to the Payment Services Regulations 2017, and the corresponding exclusion under the EU E-Money Directive 2009/110/EC. An independent legal opinion confirming this has not yet been obtained. KLM is not a cryptocurrency or crypto-asset, is not an investment, cannot be traded, and is fixed at £0.20 a Unit.
Our written AML, CTF, sanctions and data protection policies, and the named MLRO and Data Protection Lead, are summarised in the Policy Centre.
Anti-Money Laundering (AML)
Robust AML procedures including transaction monitoring, suspicious activity reporting, and customer due diligence.
Counter-Terrorist Financing (CTF)
Comprehensive screening against sanctions lists and terrorist financing watchlists.
Data Protection (GDPR)
Full compliance with UK GDPR and Data Protection Act 2018 for user privacy and data rights.
Consumer Protection
Adherence to consumer rights legislation including transparent pricing, fair terms, and dispute resolution.
Our closed-loop model and comprehensive compliance framework means:
- Safety: Your KLM and data are protected by layered security, continuous monitoring and clear, published rules.
- Transparency: Clear rules and processes that apply equally to all participants.
- Trust: A platform built on compliance, not on bypassing regulations.
- Innovation: Regulatory compliance that enables, rather than restricts, platform features and benefits.
If you have questions about KAELUM's regulatory compliance or how it affects your use of the platform, please reach out via our Contact Us page.
Contact Us →
Not Crypto. Not Blockchain. Not speculation. KAELUM is Agentic Ai Native.Zero chargebacks by design. KAELUM Merchants get paid in real Money, every time.K.A.T.E. Governs the Rails. You Govern the Spend. Agentic Banking is live on KAELUM.Creators: turn any post into a checkout. Monetise your audience directly with Social Paylinks.Become a KSC currency operator. Earn 2.5% commission on every transaction your sub-currency generates.KAELUM Tesserae: Ai-governed Non-Fungible digital assets of ownership and access.If you still think Loyalty Points are a Reward, you have never been Paid to Shop. KAELUM Users have!KLM is fixed at £0.20. It never expires and it is not a speculative asset. That is by Design.Spend KLM Units. Save 6%+ at every participating Merchant. Real value with every purchase.Not Crypto. Not Blockchain. Not speculation. KAELUM is Agentic Ai Native.Zero chargebacks by design. KAELUM Merchants get paid in real Money, every time.K.A.T.E. Governs the Rails. You Govern the Spend. Agentic Banking is live on KAELUM.Creators: turn any post into a checkout. Monetise your audience directly with Social Paylinks.Become a KSC currency operator. Earn 2.5% commission on every transaction your sub-currency generates.KAELUM Tesserae: Ai-governed Non-Fungible digital assets of ownership and access.If you still think Loyalty Points are a Reward, you have never been Paid to Shop. KAELUM Users have!KLM is fixed at £0.20. It never expires and it is not a speculative asset. That is by Design.Spend KLM Units. Save 6%+ at every participating Merchant. Real value with every purchase.Not Crypto. Not Blockchain. Not speculation. KAELUM is Agentic Ai Native.Zero chargebacks by design. KAELUM Merchants get paid in real Money, every time.K.A.T.E. Governs the Rails. You Govern the Spend. Agentic Banking is live on KAELUM.Creators: turn any post into a checkout. Monetise your audience directly with Social Paylinks.Become a KSC currency operator. Earn 2.5% commission on every transaction your sub-currency generates.KAELUM Tesserae: Ai-governed Non-Fungible digital assets of ownership and access.If you still think Loyalty Points are a Reward, you have never been Paid to Shop. KAELUM Users have!KLM is fixed at £0.20. It never expires and it is not a speculative asset. That is by Design.