DFSA Modernizes Crypto Rules: Shifts Token Approval Burden to Firms

The Dubai Financial Services Authority (DFSA) has officially enacted an updated regulatory framework for crypto tokens within the Dubai International Financial Centre (DIFC), marking a significant shift in how digital assets are governed in the region.

This enhanced regime, which follows a comprehensive consultation process concluded in late 2025, is designed to provide greater clarity for market participants while fostering a transparent and well-regulated environment. By refining the rules first established in 2022, the DFSA aims to align the DIFC with global best practices and the rapid evolution of the digital asset market over the last three years.

In a major policy departure, the updated framework moves away from a regulator-led suitability assessment toward a firm-led model. Financial institutions operating in the DIFC are now directly responsible for conducting their own documented assessments to ensure each crypto token meets specific criteria, meaning the DFSA will no longer maintain or publish an official list of recognized tokens. This reform grants firms increased flexibility and autonomy but is balanced by stricter investor safeguards, refined operational requirements, and new reporting obligations that reflect the current complexities of the global crypto landscape.

Charlotte Robins, Managing Director of Policy and Legal at the DFSA, characterized the updates as a proactive response to industry feedback and a reflection of the authority's progressive stance on innovation. She emphasized that the primary goal is to maintain a predictable regulatory environment that protects market integrity while allowing for sustainable development. For firms engaged in trading, custody, asset management, or advisory services, the new framework provides a more structured and transparent pathway for scaling their operations within the DIFC’s jurisdiction.