DFSA bans privacy tokens in DIFC and tightens stablecoin rules from Jan. 12

Dubai's DFSA has updated its Crypto Token Regulatory Framework, enforcing a ban on privacy tokens and related tools across the DIFC from Jan. 12. Stablecoins must now be fiat-pegged and backed by high-quality, liquid reserves, while algorithmic designs like Ethena are excluded from the stablecoin category. Token approval decisions are shifted to licensed firms, which must assess and document the suitability and compliance of assets they list.