diff --git a/src/Neo/Ledger/MemoryPool.cs b/src/Neo/Ledger/MemoryPool.cs
index 35748ef018..bd6cfea33f 100644
--- a/src/Neo/Ledger/MemoryPool.cs
+++ b/src/Neo/Ledger/MemoryPool.cs
@@ -117,6 +117,13 @@ public int Count
         /// </summary>
         public int UnVerifiedCount => _unverifiedTransactions.Count;
 
+        /// <summary>
+        /// Transaction policy validator function.
+        /// This function will be called to validate each transaction before adding it to the pool.
+        /// If the function returns false, the transaction will be rejected.
+        /// </summary>
+        public Func<Transaction, IReadOnlyStore, bool>? PolicyValidator { get; set; }
+
         /// <summary>
         /// Initializes a new instance of the <see cref="MemoryPool"/> class.
         /// </summary>
@@ -307,6 +314,11 @@ internal bool CanTransactionFitInPool(Transaction tx)
 
         internal VerifyResult TryAdd(Transaction tx, DataCache snapshot)
         {
+            if (PolicyValidator != null)
+            {
+                if (!PolicyValidator(tx, snapshot)) return VerifyResult.PolicyFail;
+            }
+
             var poolItem = new PoolItem(tx);
 
             if (_unsortedTransactions.ContainsKey(tx.Hash)) return VerifyResult.AlreadyInPool;
diff --git a/tests/Neo.UnitTests/Ledger/UT_MemoryPool.cs b/tests/Neo.UnitTests/Ledger/UT_MemoryPool.cs
index d29647a13b..9fd349169a 100644
--- a/tests/Neo.UnitTests/Ledger/UT_MemoryPool.cs
+++ b/tests/Neo.UnitTests/Ledger/UT_MemoryPool.cs
@@ -23,6 +23,7 @@
 using System;
 using System.Collections;
 using System.Collections.Generic;
+using System.ComponentModel;
 using System.Linq;
 using System.Numerics;
 using System.Threading.Tasks;
@@ -158,6 +159,21 @@ public void CapacityTest()
             Assert.HasCount(100, _unit);
         }
 
+        [TestMethod]
+        public void CancelTest()
+        {
+            // Add over the capacity items, verify that the verified count increases each time
+
+            _unit.PolicyValidator = new Func<Transaction, IReadOnlyStore, bool>((tx, sn) => false);
+            AddTransactions(1);
+            _unit.PolicyValidator = null;
+
+            Assert.AreEqual(0, _unit.SortedTxCount);
+            Assert.AreEqual(0, _unit.VerifiedCount);
+            Assert.AreEqual(0, _unit.UnVerifiedCount);
+            Assert.HasCount(0, _unit);
+        }
+
         [TestMethod]
         public void BlockPersistMovesTxToUnverifiedAndReverification()
         {