A restricted blockchain is one where participation—either in transaction validation, data access, or

both—is limited to selected entities rather than being open to the public.

Consortium blockchain (D) is a common type of restricted blockchain in which multiple pre-approved

organizations collectively manage the network. It offers partial decentralization but with controlled

membership, making it suitable for regulated environments such as financial services, supply chain

tracking, and interbank settlements.

Other options explained:

Hybrid (A): Combines elements of public and private chains, but not necessarily “restricted” in the

strict governance sense.

Public (B): Open to anyone to join, read, and write data; not restricted.

Private (C): While private blockchains are also restricted, in AML/CFT guidance, “restricted

blockchain” generally refers to consortium arrangements involving multiple vetted participants,

rather than a single organization’s closed chain.

Regulatory and technical literature in DIFC/ADGM contexts note that consortium blockchains allow

for compliance controls, participant vetting, and transaction monitoring—making them particularly

suitable for financial ecosystems where controlled access is essential.