Dubai Financial Authority's new crypto regulations take effect, shifting the token applicability assessment responsibility to licensed companies

On January 12, the Dubai Financial Services Authority (DFSA) officially implemented significant updates to its crypto token regulatory framework, shifting the responsibility for crypto token suitability assessments from the regulator to licensed firms operating within the Dubai International Financial Centre (DIFC). Under the revised rules effective this Monday, companies providing financial services involving crypto tokens must now determine for themselves whether the tokens involved meet the DFSA’s suitability standards. As part of the change, the DFSA will no longer maintain or publish a list of approved crypto tokens. This update follows a consultation process launched in October 2025 and reflects a shift in the regulator’s approach since the introduction of the crypto token regulatory regime in 2022. The DFSA stated that it has been closely monitoring market developments and engaging with relevant parties to ensure the framework aligns with global standards. The updated DFSA framework does not explicitly prohibit any specific categories of digital assets. However, the revision redistributes the responsibility for token suitability assessments from the regulator to licensed firms operating within the DIFC. Even without an explicit ban, privacy-focused tokens like Monero and Zcash may face stricter scrutiny under the DFSA’s updated framework. Some privacy coins may be regarded as high-risk assets by internal compliance teams, leading companies to apply more rigorous due diligence standards or avoid supporting such tokens altogether.