The Dubai Monetary Companies Authority (DFSA) has introduced into drive a significant replace to its Crypto Token Regulatory Framework, shifting accountability for crypto token suitability assessments from the regulator to licensed corporations working within the Dubai Worldwide Monetary Centre (DIFC), Dubai’s monetary free financial zone.
Beneath the revised guidelines, which took impact on Monday, corporations offering monetary companies involving crypto tokens should now decide whether or not tokens they interact with meet the DFSA’s suitability standards. As a part of the change, the DFSA will now not preserve or publish an inventory of acknowledged crypto tokens.
The replace follows a session course of launched in October 2025, and displays a shift within the regulator’s method since introducing its crypto token regime in 2022. Since then, the DFSA mentioned it has intently monitored developments and engaged with stakeholders to make sure the framework stays aligned with international requirements.
Charlotte Robins, managing director of coverage and authorized on the DFSA, mentioned the modifications mirror a deliberate transfer towards a extra versatile and principles-based mannequin. “The DFSA’s enhancements to the Crypto Token regime mirror our progressive stance on innovation and proactive response to market developments and suggestions,” Robins mentioned.
A harder framework for privateness tokens
The DFSA’s up to date framework doesn’t introduce an specific ban on any particular class of digital belongings by identify.
Nevertheless, the modifications reallocate accountability for assessing the suitability of tokens from the regulator to licensed companies working throughout the DIFC.
Even with out an specific ban, privacy-focused tokens like Monero (XMR) and Zcash (ZEC) might face higher scrutiny beneath the DFSA’s up to date framework. Some privateness tokens could also be deemed greater threat by inner compliance groups, main companies to use stricter due diligence requirements or keep away from supporting them altogether.
The change additionally highlights a key jurisdictional distinction. The DFSA regulates monetary companies inside DIFC, which operates beneath a common-law framework separate from Dubai’s onshore regulatory regime.
Different jurisdictions of Dubai and the UAE fall beneath completely different crypto regulators with their very own rulebooks.
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Privateness tokens and the UAE’s fragmented method
The DFSA’s principles-based method contrasts sharply with the stance taken elsewhere in Dubai.
As beforehand reported by Cointelegraph in February 2023, Dubai’s crypto regulator, the Dubai Digital Belongings Regulatory Authority (VARA), launched an specific ban on privateness cash beneath its Digital Belongings and Associated Actions Laws 2023.
VARA’s guidelines prohibit the issuance of “anonymity-enhanced cryptocurrencies” and all associated digital asset actions inside its jurisdiction, which covers most of Dubai exterior DIFC.
Throughout the broader UAE, crypto regulation stays fragmented. Abu Dhabi’s regulator, the Abu Dhabi International Market (ADGM), adopts a conservative, risk-based method with out an outright ban, whereas federal regulators emphasize AML and counter-terrorism financing compliance.
Because of this, privacy-focused crypto belongings will not be uniformly unlawful throughout the UAE, however their therapy varies considerably by jurisdiction.
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