Dubai Financial Services Authority's new crypto regulations take effect, shifting responsibility for token suitability assessments to licensed firms

BlockBeats News, January 12, the Dubai Financial Services Authority (DFSA) has officially implemented a major update to its crypto token regulatory framework, shifting the responsibility for crypto token suitability assessments from the regulator to licensed firms operating in the Dubai International Financial Centre (DIFC).

According to the revised rules that came into effect this Monday, companies providing financial services involving crypto tokens must now independently determine whether the tokens they deal with meet the DFSA's suitability standards. As part of the change, the DFSA will no longer maintain or publish a list of recognized 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 during this period, it has closely monitored market developments and maintained communication with stakeholders to ensure the framework remains aligned with global standards.

The updated DFSA framework does not explicitly prohibit any specific category of digital assets. However, the revisions reassign the responsibility for token suitability assessments from the regulator to licensed firms operating within the DIFC.

Even without explicit bans, privacy-focused tokens such as Monero and Zcash may face stricter scrutiny under the updated DFSA framework. Some privacy coins may be considered high-risk assets by internal compliance teams, leading companies to apply more stringent due diligence standards to them or to avoid supporting such tokens altogether.