Hiring and managing international contractors has never been more complex, especially for Web3 companies operating at the bleeding edge of blockchain innovation and regulation.
With shifting compliance landscapes, increased regulatory scrutiny, and the need for speed and flexibility, many Web3 organizations are turning to a Web3 Agent of Record (AOR) as the preferred solution for global contractor engagement.
As of 2025, we have processed over $500 million in payments to international contractors across 190+ countries, supporting payouts in 90+ local currencies and 100+ cryptocurrencies.
This article explores why using an Agent of Record is a smart, strategic move for Web3 companies and how Rise, the leading AOR provider for 2025, is reshaping the way decentralized teams stay compliant while scaling fast.
Key Takeaways
- Reducing misclassification risk by acting as legal agent and ensuring compliance.
- Handle onboarding, tax reporting, and identity checks for global teams.
- Optimization for Web3 companies, offering legal protection and operational speed at a fixed monthly rate.
What Is a Web3 Agent of Record?
A Web3 Agent of Record is a third-party entity that assumes legal responsibility for managing independent contractors on behalf of a Web3 company.
This includes:
- Handling contracts and onboarding
- Performing classification checks
- Issuing tax documentation (e.g., 1099s, W-8BENs)
- Ensuring regulatory compliance across jurisdictions
By acting as a legal intermediary, the AOR removes the client company from direct legal security risk, particularly around contractor misclassification.
For Web3 firms that rely on remote talent, crypto payments, and decentralized workflows, an AOR acts as a legal and compliance firewall.
Why Web3 Companies Face Unique Contractor Risks
Web3 organizations often operate across borders, hire rapidly, and manage digital asset payments in non-traditional currencies like USDC or USDT. This creates friction with conventional HR, legal, and payroll frameworks.
Some of the unique challenges include:
- Global Compliance Confusion: Navigating laws like California's AB5 or EU employment directives is difficult without dedicated legal support.
- Crypto Payroll Complexity: Most traditional payroll services are not equipped to handle crypto payments or taxation.
- Misclassification Penalties: Improperly classifying contractors can result in fines, back taxes, and legal disputes.
- Scalability Issues: Fast-scaling teams need turnkey solutions, not manual HR and legal bottlenecks.
Benefits of Using a Web3 Agent of Record
1. Full Legal and Compliance Protection
Rise acts as the legal agent for your contractors, absorbing the compliance risk. By subcontracting contractors through us, you stay out of the legal line of fire and reduce exposure to penalties, audits, and lawsuits.
2. Crypto and Fiat Payment Flexibility
With support for 90+ local currencies and 100+ cryptocurrencies, Rise enables fast, flexible payments in both fiat and stablecoins like USDC and USDT. Contractors can withdraw in their preferred currency.
3. Streamlined Onboarding and Documentation
Rise manages the entire contractor lifecycle:
- Contract creation and signing
- NDAs and background checks
- Tax classification and documentation
- Local labor law compliance
This means no internal HR overhead and no compliance guesswork.
4. Tax Reporting Made Simple
At year-end, Rise issues necessary tax forms such as 1099s for U.S. contractors or W-8BENs for international freelancers. You get audit-ready documentation without needing in-house tax expertise.
5. Operational Efficiency and Scalability
Rise’s dashboard gives companies full visibility and control. Invite contractors, track onboarding, fund payroll, and manage reporting from one intuitive platform, built to scale with your team.
6. Global Reach
With support for 190+ countries, Rise ensures you can compliantly hire the best talent worldwide. Whether it’s a developer in Serbia or a designer in Brazil, Rise covers onboarding, payments, and compliance.
7. Transparent and Predictable Pricing
For $400 per contractor per month, you get a comprehensive AOR solution including classification checks, tax filings, and contractor administration, with no hidden fees.
Who Should Use an AOR?
High-Risk Jurisdiction Operators
If you hire in places like California or the EU, where labor laws are strict, an AOR is your insurance against misclassification lawsuits and tax liability.
Web3-Native Companies
Decentralized teams paying in crypto need an AOR that understands token-based compensation, wallet payouts, and smart contract deliverables.
Fast-Scaling Startups
Startups that need to hire quickly across borders often skip over compliance details. Rise automates those steps so you can scale fast, without skipping legal essentials.
Enterprises with Distributed Teams
For large teams with contractors in multiple countries, managing individual contracts, payment structure, and intellectual property agreements becomes overwhelming. An AOR handles this globally.
The Rise AOR Model: How It Works
- Create a Business Account: Register your company and provide basic details.
- Invite Contractors: Send secure onboarding links from your dashboard.
- Rise Signs Legal Agreements: Rise becomes the contractor's legal agent.
- Fund Payroll in Fiat or Crypto: Choose your preferred payment method.
- Tax Reporting and Compliance Checks: Rise handles everything end-to-end.
- Contractor Withdrawals: Payouts in local fiat or crypto wallets.
Final Thoughts
The Web3 ecosystem is moving fast, but compliance isn’t something you can afford to overlook. Missteps in contractor engagement can cost millions in penalties and delay your ability to grow globally.
By using our Web3 Agent of Record, you eliminate legal uncertainty, ensure contractor satisfaction, and gain the operational freedom to scale.
If you're a Web3 company looking to pay remote contractors compliantly in fiat or crypto, Rise is the best AOR solution in 2025.
Book a demo with us today and protect your business while powering global growth.
FAQ
1. What is a Web3 Agent of Record?
A Web3 Agent of Record is a third-party that assumes legal responsibility for your independent contractors, ensuring compliance with global laws while enabling crypto and fiat payments.
2. How much does Rise’s AOR service cost?
Rise charges $400 per contractor per month, covering compliance, onboarding, tax reporting, and more.
3. Can I pay contractors in crypto?
Yes. Rise supports payments in stablecoins like USDC and USDT, with withdrawal options in fiat or crypto.
4. What legal protections does AOR provide?
An AOR reduces your risk of misclassification, audits, and penalties by acting as the legal agent for your contractors.
5. Is an AOR better than managing contractors directly?
Absolutely. It reduces compliance workload, legal liability, and streamlines operations, especially for Web3 companies hiring globally.
