What happened
According to Elliptic Blog, regulators in three jurisdictions are implementing on-chain data audits and continuous monitoring to adapt to artificial intelligence technologies.
Why it matters
The shift toward continuous monitoring and on-chain auditing could fundamentally change compliance rules for the crypto business, making operational transparency mandatory in real-time rather than post-factum.
Regulatory bodies in Dubai (VARA), the United Kingdom (FCA), and Hong Kong (HKMA) have begun reviewing financial oversight approaches amidst the development of artificial intelligence. This information is based on a report from the Elliptic company blog published in July 2026.
As part of the new strategy, regulators are considering the implementation of mechanisms for auditing data directly on the blockchain (on-chain audits) and transitioning to systems of continuous market activity monitoring. Such measures are intended to replace or supplement traditional reporting verification methods.
The initiative reflects an attempt by government structures to adapt the regulatory framework to the speed of technological changes, where traditional periodic control may prove ineffective in the face of automated financial operations.
Confirmed facts
- VARA, FCA, and HKMA regulators are reviewing financial oversight methods.
- New approaches are oriented toward the era of artificial intelligence.
- Tools under consideration include on-chain audits and continuous monitoring.
- Information originates from the meta-description of an Elliptic blog article dated July 21, 2026.
Context
Traditional regulation often relies on quarterly or annual reports, whereas the crypto market operates around the clock. The mentioned jurisdictions are key hubs for digital assets, and their synchronization of efforts could set a global standard.
What remains unknown
- What specific technical standards will be proposed for on-chain audits?
- Will these measures be mandatory for all market participants or only for licensed institutions?
- How exactly will artificial intelligence be used by regulators: for data analysis or for decision-making?
Editorial context
Confidence: medium
The most likely consequence will be an increase in compliance costs for crypto companies due to the need to provide data in real-time. The next observable signal will be the publication of specific technical specifications or consultation documents from VARA, FCA, or HKMA. The primary uncertainty stems from the lack of details regarding how data confidentiality will be ensured at such a level of transparency.