What is setup.reg? Should I remove it?

The setup.reg file is an essential part of a particular parasite and therefore is responsible for the pest’s malicious activity. Exact purposes of setup.reg depend on the related parasite’s type and carried payload. Some threats can use setup.reg to serve annoying pop-up advertisements or store certain configuration settings, while others need it to corrupt files, steal user confidential information or run a spreading routine. In any case, DO NOT open this file!
The setup.reg file is installed and used by keylogger Watchfull eye.
Sometimes a presence of setup.reg does not indicate that your computer is infected. It can be an essential system file or a file installed by harmless legitimate software and therefore may not pose any threat to your privacy and the system. Although such cases are quite rare, you should thoroughly examine setup.reg before completely deleting or leaving it in the system.