Dubai Financial Services Authority (DFSA) implemented a major update to its Crypto Token Regulatory Framework on Monday, moving responsibility for token suitability checks to licensed firms in the Dubai International Financial Centre (DIFC). The change aims to adopt a more flexible, principles-based model and keep the regime aligned with global standards, as stated in the published rules.
Firms providing financial services with crypto tokens must now decide whether tokens meet the DFSA’s suitability criteria. The DFSA will no longer publish a list of recognized crypto tokens (this shifts compliance burdens onto licensees).
Charlotte Robins, managing director of policy and legal at the DFSA, framed the shift as deliberate and flexible. “The DFSA’s enhancements to the Crypto Token regime reflect our progressive stance on innovation and proactive response to market developments and feedback,” she said.
Privacy-focused tokens such as Monero and Zcash may face increased scrutiny and tougher internal due diligence, and some firms may choose not to support them (Ed. note: this could reduce market access for such tokens). The DFSA regulates activities within DIFC under a common-law framework separate from Dubai’s onshore rules, as explained on the DFSA site.
Regulation across the UAE remains fragmented. Abu Dhabi’s ADGM follows a conservative risk-based approach (guidance), while federal agencies emphasize AML and counter-terrorism financing compliance (analysis).
