Report: Dubai Free Zone Shifts Crypto Token Vetting To Licensed Companies
The Dubai Financial Services Authority (DFSA) made a major update to its Crypto Token Regulatory Framework, shifting responsibility for crypto token suitability assessments from the regulator to licensed companies operating in the Dubai International Financial Centre (DIFC), Dubai’s financial free economic zone.
Under the revised rules, which took effect on Monday, companies providing financial services involving crypto tokens must determine whether tokens they engage with meet the DFSA’s suitability criteria. As part of the change, the DFSA will no longer maintain or publish a list of recognized crypto tokens.
The update follows a consultation process launched in October 2025, and reflects a shift in the regulator’s approach since introducing its crypto token regime in 2022. Since then, the DFSA said it has closely monitored developments and engaged with stakeholders to ensure the framework remains aligned with global standards.
Charlotte Robins, managing director of policy and legal at the DFSA, said the changes reflect a deliberate move toward a more flexible and principles-based model. “The DFSA’s enhancements to the Crypto Token regime reflect our progressive stance on innovation and proactive response to market developments and feedback,” Robins said.
The DFSA’s updated framework does not introduce an explicit ban on any specific category of digital assets by name.
Still, the changes reallocate responsibility for assessing the suitability of tokens from the regulator to licensed companies operating within the DIFC.
The change also highlights a key jurisdictional distinction. The DFSA regulates financial services within DIFC, which operates under a common-law framework separate from Dubai’s onshore regulatory regime.
Other jurisdictions of Dubai and the UAE fall under different crypto regulators with their own rulebooks.
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The DFSA’s principles-based approach contrasts sharply with the stance taken elsewhere in Dubai.
Source: CoinTelegraph
