We design and implement custom Layer 1/Layer 2 solutions with sub-2-second finality and >10,000 TPS capacity. Our full-stack development covers consensus mechanisms, node infrastructure, and cross-chain bridges.
Compliance-First Tax Engine for Regulated DeFi Payments
Custom Blockchain Development
Build secure, scalable blockchain networks and protocols tailored to your business logic.
- Core Protocol: Custom
EVMorCosmos SDKchains,zk-rollupvalidiums, andSubstrate-based parachains. - Node Infrastructure: Managed validator sets, RPC endpoints, and block explorers with 99.9% uptime SLA.
- Security First: Formal verification, economic modeling, and third-party audits from firms like Trail of Bits and Quantstamp.
Deploy a production-ready testnet in under 8 weeks, from whitepaper to live protocol with documented APIs and developer tooling.
Core Capabilities of Our Tax Engine Service
Our compliance-first tax engine delivers automated, auditable reporting for DeFi payments, reducing operational risk and ensuring adherence to global standards like FATF Travel Rule and IRS 1099-DA.
Real-Time Transaction Classification
Automatically categorizes DeFi payments (staking rewards, airdrops, swaps) for tax treatment using on-chain data and protocol-level logic. Eliminates manual tagging errors and ensures accurate cost-basis calculation.
Automated Regulatory Reporting
Generates jurisdiction-specific tax forms (e.g., IRS Form 1099-DA, FATF Travel Rule reports) with full audit trails. Integrates directly with tax authorities' e-filing systems where available.
Enterprise-Grade Data Integrity
Immutable, timestamped audit logs for every calculation and report. Built-in reconciliation with blockchain explorers and custodian records to guarantee data accuracy and non-repudiation.
Seamless Platform Integration
RESTful APIs and webhook events for easy integration into existing payment rails, custody solutions, and accounting systems (e.g., NetSuite, QuickBooks). No blockchain expertise required.
Business Outcomes for Your DeFi Protocol
Our tax engine is not a cost center—it's a strategic enabler. We deliver the infrastructure that allows your protocol to operate with regulatory confidence, unlocking new markets and institutional capital.
Accelerated Market Entry
Deploy a fully integrated, audit-ready tax reporting module in under 4 weeks. We handle the complex regulatory logic, so you can focus on your core product and go-to-market strategy.
Institutional-Grade Audit Trail
Every transaction is logged with immutable, jurisdiction-specific tax logic. Generate comprehensive reports for users, auditors, and regulators on-demand, built on secure, verifiable data structures.
Reduced Legal & Operational Risk
Mitigate compliance exposure with engine logic vetted against evolving global frameworks (e.g., OECD Crypto-Asset Reporting Framework, EU DAC8). Proactive updates keep you ahead of regulatory changes.
Enhanced User Trust & Retention
Offer transparent, accurate tax summaries directly in your UI. Reduce user churn caused by tax season complexity and build loyalty with a superior, compliant user experience.
Scalable Architecture for Growth
Our engine scales seamlessly with your protocol's TVL and user base. Handle millions of transactions with sub-second latency, ensuring performance never compromises compliance.
Future-Proof Regulatory Alignment
Gain a strategic partner, not just a vendor. Our dedicated regulatory team monitors and implements changes for key markets, ensuring your protocol's long-term viability and expansion potential.
Build vs. Buy vs. Our Managed Service
Choosing the right path for your tax and compliance engine impacts time-to-market, cost, and regulatory risk. Compare the options to make an informed decision.
| Key Factor | Build In-House | Buy Off-the-Shelf | Chainscore Managed Service |
|---|---|---|---|
Time to Market | 8-14 months | 3-6 months | 4-8 weeks |
Initial Development Cost | $300K - $800K+ | $50K - $150K license | From $75K implementation |
Ongoing Maintenance & Updates | Your team (2-3 FTE) | Vendor-dependent (20-30% annual fee) | Included in SLA |
Regulatory Coverage (FATF, MiCA, IRS) | High risk (self-researched) | Generic, may not fit your jurisdiction | Tailored to your operating regions |
Smart Contract & System Security | Your responsibility (unaudited) | Vendor's responsibility (varies) | Audited code + 24/7 monitoring |
Integration Complexity | Custom, full-stack build | API-based, limited customization | White-label API + dedicated integration support |
Audit Trail & Reporting | Build from scratch | Standard templates | Customizable, real-time dashboards |
Total Cost of Ownership (Year 1) | $450K - $1M+ | $110K - $270K | $120K - $200K |
Primary Risk | Regulatory missteps, security flaws | Vendor lock-in, feature gaps | Managed by our compliance & security team |
Our Four-Phase Delivery Methodology
We deliver your compliant tax engine with a transparent, milestone-driven process. Each phase is designed for maximum security, regulatory alignment, and rapid integration into your existing DeFi payment stack.
Phase 1: Discovery & Regulatory Mapping
We conduct a deep-dive analysis of your target jurisdictions (e.g., US, EU, APAC) and payment flows to map FATF Travel Rule, IRS 6050I, and MiCA requirements. This phase defines the precise tax logic and reporting obligations for your platform.
Phase 2: Architecture & Smart Contract Audit
Our engineers design the system architecture, separating core payment logic from the tax calculation engine. All smart contracts undergo a formal security audit by a third-party firm (e.g., Spearbit, Code4rena) before a single line of production code is written.
Phase 3: Engine Development & Integration
We build the core tax calculation engine with real-time rate fetching and develop secure APIs for seamless integration with your wallet infrastructure and payment rails. Includes full test suite and staging environment deployment.
Phase 4: Deployment, Reporting & Compliance Handoff
We manage the production deployment, configure automated tax report generation (e.g., Form 1099, transaction ledgers), and provide full documentation for your compliance team and regulators. Includes 30 days of post-launch support.
Smart Contract Development
Secure, production-ready smart contracts built for your specific business logic.
We architect and deploy custom smart contracts that are secure, gas-optimized, and tailored to your application's unique requirements. From ERC-20 tokens and ERC-721 NFTs to complex DeFi protocols and DAO governance systems, we translate your business rules into immutable on-chain logic.
Every contract undergoes a rigorous security-first development lifecycle, from initial design to final audit, ensuring your core business logic is protected.
- Security Audits: All code is reviewed against common vulnerabilities and tested with tools like Slither and Foundry.
- Gas Optimization: We minimize transaction costs through efficient coding patterns and storage strategies.
- Full Documentation: Receive comprehensive technical specs and user guides for your team and community.
- Maintenance & Upgrades: We support post-deployment with monitoring, bug fixes, and upgradeable contract patterns.
Frequently Asked Questions on DeFi Tax Compliance
Get clear answers on how our compliance-first tax engine integrates with your DeFi payment flows, from implementation to ongoing reporting.
We provide a modular API-first architecture. Integration typically involves connecting your smart contract events to our secure ingestion layer via webhooks or direct RPC. Our SDKs for Solidity and Rust handle transaction normalization, while our REST API delivers real-time tax calculations. We support EVM chains (Ethereum, Polygon, Arbitrum) and Solana out of the box.
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.