Dubai Hands Crypto Token Vetting to Firms

Ben Graham · 13 horas atrás

More rules and regulations at the start of 2026, and Dubai is also updating its stance on crypto. The Dubai Financial Services Authority (DFSA) has updated its rules for crypto tokens in the Dubai International Financial Centre (DIFC). Effective January 12, 2026, licensed firms must now evaluate and decide for themselves whether a crypto token meets the regulator’s suitability standards. The DFSA has removed its previous list of recognised crypto tokens.

This adjustment moves away from centralised approvals and places direct accountability on the companies offering these services. It aligns with how several global regulators are handling digital assets, emphasising firm responsibility over regulatory pre-approvals.

In other words, firms need to do their own DYOR now.

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A Quiet but Significant Change in the DIFC Framework

The DIFC operates as a separate common-law jurisdiction within Dubai, managed by the DFSA. Since introducing its crypto token regime in 2022, the authority has maintained a published list of recognised tokens (including major ones like Bitcoin, Ethereum, Litecoin, and others). Tokens on that list were generally considered acceptable for licensed activities such as trading, custody, advisory, and fund management.

That centralized list is now gone. Firms must perform their own documented assessments for each token they handle. These evaluations need to cover factors like transparency of governance, underlying technology, liquidity, trading history, regulatory treatment in other places, and compatibility with anti-money laundering (AML) and counter-terrorist financing rules. Assessments must be ongoing, with firms required to monitor and update them as needed.

The goal, according to the DFSA and statements from the Managing Director of Policy and Legal, Charlotte Robins, is to create a more flexible, clean, and predictable environment. The changes follow a public consultation in October 2025 and reflect lessons from market evolution over the past few years.

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Why the Regulator Stepped Back from Token Pre-Approvals

Past experience with exchange failures and market incidents showed that a regulator-maintained list could create a misleading impression of safety. When issues arose, responsibility often shifted toward the authority rather than the firms involved.

By shifting the evaluation process to licensed entities, the DFSA ensures that companies bear the compliance, legal, and reputational consequences if a token proves problematic. This approach promotes stronger internal due diligence and better aligns with international standards seen in places like Singapore, Hong Kong, and the EU.

The update also includes enhanced investor protections and more tailored reporting requirements that match current market realities.

Privacy-Focused Tokens Now Face Major Barriers Even In Crypto-Friendly Heavens Like Dubai

Privacy tokens are struggling, even in places like Dubai that have long been open to crypto. Still, in late 2025, they surged as investors focused on protecting their assets from doxxing. Monero has since hit a new all-time high.

It appears that the more regulators push back against privacy, the more attractive the meta becomes to investors.

(Source: TradingView)

The new framework does not name specific bans for most tokens, but it introduces strict prohibitions on privacy-enhancing assets. Tokens designed to obscure transaction details, origins, destinations, or ownership (such as Monero and Zcash) are effectively excluded from regulated activities in the DIFC. This includes trading, promotion, custody, derivatives, and fund exposure.

JUST IN

Dubai’s DFSA bans privacy tokens and tightens stablecoin rules under its updated Crypto Token Regulatory Framework, effective Jan 12.

Regulation keeps evolving — eyes on what comes next

— Crypto Verse (@CryptoVerse_Co) January 12, 2026

The reason lies in AML and FATF compliance: privacy features make it extremely difficult for firms to trace funds, identify parties, or meet transparency obligations. The DFSA has also barred related “privacy devices” or tools that anonymize transactions.

This stance mirrors restrictions already in place in mainland Dubai under the Virtual Assets Regulatory Authority (VARA), which banned anonymity-enhanced cryptocurrencies earlier. The DIFC’s approach reinforces the UAE’s overall preference for traceable digital assets in regulated environments.

Outside DIFC, Dubai’s main crypto regulator already banned privacy coins. The UAE remains a patchwork.

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