Crypto: What Dubai’s Ban On Monero And Zcash Signals For Regulated Crypto

Meanwhile, the DFSA has placed greater responsibility on licensed firms. Rather than depending exclusively on regulator-approved whitelists, firms must now perform their own evaluations of token suitability and compliance.

Did you know? Monero has no fixed supply cap. After its initial emission phase ended, it switched to a “tail emission” that adds a small, permanent block reward to keep miners incentivized. This was designed to prevent long-term security risks seen in fixed-supply networks.

The DFSA focuses on Anti-Money Laundering (AML) and sanctions compliance. Global standards established by organizations like the Financial Action Task Force (FATF) require financial intermediaries to identify counterparties, monitor transactions and report suspicious activity.

Dubai’s decision aligns with a wider global regulatory approach to restricting crypto tokens that promote anonymity.

Did you know? Zcash transactions can be transparent or private. Users can choose between public addresses and shielded addresses, unlike fully private-by-default networks.

These developments reveal a fundamental division in crypto markets:

Regulated access channels are becoming more limited, particularly for assets that hinder compliance efforts.

This division could transform the way capital moves through crypto markets, with distinct asset classes serving very different user groups.

For exchanges operating in financial hubs like Dubai, regulatory clarity has dual effects. While it limits certain offerings, it also reduces uncertainty around compliance requirements.

Companies seeking licenses in regulated jurisdictions must now expect that assets with built-in obfuscation features are unlikely to gain approval. Token listings will increasingly be assessed not only on market demand but also on parameters such as traceability, auditability and compatibility with travel-rule reporting.

Source: CoinTelegraph