DFSA Strengthens Crypto Token Framework With Comprehensive Regulatory Updates

A similar trend has been seen in the protection of crypto assets, where the Dubai Financial Services Authority has implemented major updates to its Crypto Token regulatory framework, aimed at strengthening oversight while encouraging responsible innovation. The Dubai Financial Services Authority (DFSA) is the independent regulator of the Dubai International Financial Centre (DIFC).

The updated framework of which came into force following an extensive consultation process in October 2025. This represents the most significant evolution of the DIFC’s digital asset regime since its initial introduction in 2022.[i]In order to make sure that its regulations continue to be strong, globally aligned, and encouraging of innovation in DIFC, the DFSA has carefully tracked market trends over the last three years and maintained regular contact with industry stakeholders and regulatory counterparts.

The transition from a DFSA-led suitability evaluation to a firm-led assessment is a significant change under the revised regime[ii]. Businesses that offer financial services, including cryptocurrency tokens, are now directly in charge of assessing whether each cryptocurrency token they offer satisfies the DFSA’s suitability requirements on a rational and recorded basis[iii]. Consequently, a list of recognised cryptocurrency tokens will no longer be published by the DFSA.

Alongside this change are improved investor protections, enhanced operational and conduct standards, and reasonable reporting requirements that better reflect the current state of global digital asset markets.

Who is the DFSA?

The Dubai Financial Services Authority is the regulator responsible for the DIFC, a financial free zone operating under its own legal and regulatory system. Unlike the SCA, which regulates onshore UAE markets, the DFSA oversees banks, asset managers, fintech firms, and crypto service providers operating in the DIFC.

The DFSA’s mandate is to foster a fair, transparent, and efficient financial environment while promoting Dubai’s position as a global financial and technology hub.

Beyond the assessment model, the updated framework introduces a range of investor-protection measures, including:

• Stricter conduct and governance standards for crypto service providers
• Enhanced disclosure requirements
• Clearer operational risk controls
• Proportionate reporting obligation aligned with global best practices.

A Balanced Approach to Innovation

The revised regulations are seen as part of a broader UAE strategy to position the country as a global leader in digital finance. By placing greater responsibility on  licensed firms while maintaining strong oversight, the DFSA aims to encourage institutional adoption of crypto assets without compromising market integrity.

Ad global regulators continue to grapple with crypto oversight, the DFSA’s updated model is expected to further strengthen confidence in the DIFC as a secure and well-regualted hub for virtual asset businesses.

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