🚨Breaking News: Dubai Shifts Crypto Token Approval to Licensed Firms
The Dubai Financial Services Authority (DFSA) has transferred responsibility for assessing and approving crypto tokens from the regulator to licensed firms operating within the Dubai International Financial Centre (DIFC), effective immediately.
Key Updates:
· Licensed companies must now independently determine if tokens meet DFSA suitability criteria.
· The DFSA will no longer publish an official list of approved tokens.
· The change aims to create a more flexible, principles-based regulatory framework.
Context on Privacy Tokens:
· The framework does not explicitly name banned tokens.
· However, privacy-focused assets (e.g., $XMR
,
$ZEC $) may face stricter due diligence under firm-led assessments.
· This contrasts with Dubai’s onshore regulator (VARA), which explicitly bans privacy coins.
Jurisdictional Note:
The DFSA oversees the DIFC. Other UAE jurisdictions, including much of Dubai (under VARA) and Abu Dhabi, operate under separate regulatory regimes.
Implication:
The shift may lead to de facto restrictions on certain tokens as licensed firms apply heightened compliance standards, even without explicit bans.
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