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Dubai DFSA Overhauls Crypto Rules: Bans Privacy Tokens, Tightens Stablecoins, Puts Listings on Firms

The changes align DIFC oversight with FATF standards.

Overview

  • Effective Jan. 12, the DFSA’s updated framework prohibits DIFC‑regulated firms from using, trading, promoting or offering derivatives on privacy coins.
  • Mixers, tumblers and other transaction‑obfuscation tools are barred for firms operating in or from the DIFC.
  • The regulator has scrapped its public whitelist as licensed entities must now assess, document and continuously review the suitability of tokens they list.
  • Stablecoins allowed in the financial center must be fiat‑pegged with high‑quality, liquid reserves, while algorithmic designs are treated as general crypto assets rather than stablecoins.
  • The restrictions target regulated entities rather than individual holders, and several reports noted price gains for Monero and Zcash following the announcement.