New DIFC crypto token regulations set to take effect

The Dubai Financial Services Authority (DFSA) has announced updates to its rules on regulation of crypto tokens in the DIFC, which will take effect on 12 January 2026.

These changes follow a public consultation held last year and come as the regulator looks to closer alignment with global standards.

Under the updated framework, firms providing financial services involving crypto tokens will assume direct responsibility for determining whether those tokens meet the DFSA’s suitability criteria.

This marks a shift from the previous approach, where the DFSA maintained and published its own list of recognised crypto tokens. Companies will now be required to disclose and demonstrate their monitoring processes for tokens they have deemed suitable, based on factors such as regulatory status in other jurisdictions, trading history, underlying technology and governance structures.

Marie Chowdhry, a fintech expert with Pinsent Masons in Dubai, said the new rules represent a major step forward for the sector.

“For businesses operating or seeking to operate in the DIFC, this means a more transparent, predictable, and structured pathway for crypto token activities,” she explained.

“The updated framework brings the DIFC into closer alignment with other leading international regimes - including the ADGM - by moving from regulator‑led token gatekeeping to firm‑level responsibility. This is a welcome evolution, but it also raises the bar significantly. 

“Firms will need robust internal frameworks, clear disclosures and active monitoring if they want to operate credibly in this space.”

The DFSA said the revised approach highlighted its commitment to fostering innovation while maintaining robust investor protection and market integrity within the DIFC.