Dubai Regulator Outlaws Privacy Tokens in DIFC and Limits Stablecoins to Fiat-Backed Assets from 12 January 2026

On 12 January 2026, the Dubai Financial Services Authority enforced a ban on privacy tokens within the Dubai International Financial Centre, covering trading, promotion, funds, and derivatives. The regulator also narrowed stablecoin rules to fiat-backed tokens only, excluding algorithmic designs such as Ethena's USDe from the stablecoin category.