Regulatory Alerts2026-08-10
Added
Draft Digital Assets and Registered Exchanges (Anti-Money Laundering and Countering the Financing of Terrorism) (Amendment) Rules, 2026
The draft Rules amend the principal 2022 Rules to impose continuous, risk-based monitoring of virtual asset transactions on registrants, requiring the use of automated blockchain analytics software to assess unhosted wallet risks. New provisions mandate real-time transaction monitoring systems, specific red flag alert configurations, and counterparty risk scoring prior to transaction finalization. The amendments introduce strict obligations for third-party technology outsourcing, including mandatory due diligence, contractual audit rights, and 30-to-60-day prior regulatory notification for material arrangements. Registrants are also required to implement targeted financial sanctions by freezing funds of designated persons without delay and to submit simplified due diligence procedures for Commission approval.