The Dubai Financial Services Authority (DFSA) has enforced a significant update to its regulatory framework for Crypto Tokens within the Dubai International Financial Centre (DIFC), marking a strategic shift toward a firm-led assessment model.
Effective today, 12 January 2026, the updated regime places the responsibility directly on financial services firms to determine whether specific Crypto Tokens meet the regulator’s suitability criteria.
A shift in responsibility
Under the previous regime, the DFSA maintained a central list of “Recognised Crypto Tokens.” In a move designed to offer greater flexibility and responsiveness to market developments, the regulator will no longer publish this list.
Instead, firms providing services such as trading, custody, or asset management must now undertake their own reasoned and documented assessments to ensure the tokens they engage with meet regulatory standards. This change is intended to streamline operations for market participants while maintaining robust oversight.
Charlotte Robins, managing director, policy & legal of the DFSA, commented on the regulator’s progressive stance: “The DFSA’s enhancements to the Crypto Token regime reflect our progressive stance on innovation and proactive response to market developments and feedback. These updated rules provide firms with greater clarity and flexibility, and ensure that our regulatory crypto token regime remains aligned with international best practice.”
Evolution of the framework
The updates follow a consultation process initiated in October 2025 and represent the continued evolution of the regime since its initial launch in 2022. Over the past three years, the DFSA has monitored global market shifts to ensure the DIFC remains a competitive hub for digital assets.
Beyond the assessment shift, the reforms introduce enhanced investor safeguards, refined conduct requirements, and proportionate reporting obligations designed to reflect the current maturity of the global digital assets sector.
To assist market participants in navigating these changes, the DFSA will host a webinar on 27 January 2026. The session aims to provide an overview of the regulatory approach and highlight opportunities for firms looking to establish or expand digital asset activities in the DIFC.