Dubai's DFSA shifts crypto token suitability checks to DIFC-licensed firms under updated framework

Dubai Financial Services Authority brought into force significant changes to its crypto token regulatory framework on January 12, shifting responsibility for assessing token suitability from the regulator to licensed firms operating in the Dubai International Financial Centre. Under rules that took effect Monday, companies offering financial services involving crypto tokens must now determine whether the tokens they deal in meet DFSA's suitability criteria, and the authority will no longer maintain or publish a list of recognised crypto tokens. DFSA said the update follows a consultation process launched in October 2025 and reflects an evolution in its approach since the crypto token regime was introduced in 2022. The revised rules do not explicitly ban any category of digital assets, but the shift means privacy-focused tokens such as Monero and Zcash could face tighter scrutiny, with some internal compliance teams potentially classifying certain privacy coins as high-risk and applying stricter due diligence or choosing not to support them.